Dermatology, plastic surgery clinics' 'no refund' policies corrected by Fair Trade Commission

South Korea's Fair Trade Commission (KFTC) has stepped in to correct unfair contract terms at 15 dermatology and plastic surgery clinics. These clinics were found to be unfairly denying refunds for pre-paid cosmetic procedures, particularly those sold as discounted "package deals."

The clinics, including well-known names like Tox&Feel and Oracle Skin Clinic, often bundled multiple treatments or sessions at special "event" or "special offer" prices. Patients frequently paid in advance for these packages. However, the KFTC investigation revealed that the clinics' terms included clauses that prohibited refunds after two months from the contract date, or based on reasons like simple change of mind, subjective dissatisfaction, or the passage of a specific period.

Furthermore, the KFTC found that some clinics imposed penalties of 20% to 30% of the payment for mid-contract cancellations. The commission has now ordered the removal of these restrictive refund clauses and excessive penalty provisions. Clinics must now refund the remaining balance after deducting a maximum of 10% as a penalty, in line with consumer dispute resolution standards.

Additional issues addressed by the KFTC included clauses that restricted the transfer or assignment of pre-paid treatment rights, often limiting them to one family member. The commission stated that these rights, being a form of debt, should generally be freely transferable under civil law. Clauses denying refunds when a designated medical professional left or took leave were also deemed problematic, requiring refunds if the patient did not agree to a substitute practitioner.