"Reservation confirmed, then asked for an extra 500,000 won"—Consumer alert issued over accommodation scams ahead of BTS concert

 Businesses demand additional payments after confirmed reservations
Authorities to strengthen monitoring of unfair trade practices




The Korea Consumer Agency, the Fair Trade Commission, and the Busan Consumer Organizations Council have issued a consumer alert regarding accommodation-related fraud and overcharging ahead of BTS's "Arirang in Busan" world tour concerts, scheduled to take place in Busan on June 12-13.

Under Article 7 of the Enforcement Rules of the Public Health Control Act, accommodation providers are required to honor the rates they publicly advertise. Even if a business demands additional payment after a reservation has been confirmed, consumers are under no obligation to pay. However, a number of unfair practices have recently been reported.

One accommodation provider in Busan's Haeundae District demanded an additional 500,000 won (approximately US$ 332) from a customer who had already booked a two-night stay during the concert period, claiming that the reservation had been made "below the market rate." Another establishment arbitrarily canceled a reservation that had been confirmed two months earlier and resold pressured a customer to cancel a reservation, claiming that the room rate had been mistakenly listed too low, and requested cancellation three separate times.

The Korea Consumer Agency and the Fair Trade Commission advised consumers to:

● Take photos of posted room-rate information. 
● Verify whether the amount charged exceeds the advertised price. 
● Refuse requests for additional payment after a reservation has been confirmed and paid for. 
● Keep reservation confirmations and payment records. 

Consumers who suffer losses due to forced reservation cancellations or unilateral contract terminations may seek assistance by submitting transaction records and supporting documents to the 1372 Consumer Counseling Center, the 1330 Tourist Information Call Center, or Consumer 24.

Authorities also plan to intensify monitoring of potential collusion and other unfair trade practices. The two agencies warned that accommodation providers may be violating competition law if they exchange pricing information, coordinate room rates, or agree on minimum prices under the pretext of preventing "excessive price competition."

Other practices, such as forcing costumers to purchase additional products or services as a condition of booking, may also violate consumer rights by restricting freedom of choice. Officials stated that any confirmed violations will be dealt with strictly.

Earlier, on May 13, the agencies conducted a joint inspection of accommodation businesses in Busan alongside related organizations. The inspection focused on issues such as failure to display room rates, charging price different from those posted, and consumer complaints, Additional inspections are scheduled for June 8-9.


Original article: Traveltime




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