Gyeonggi Province Mediates Delivery Service Platform 'Broom' to Change Terms Unfavorable to Franchisees and Consumers

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province announced on the 14th that it successfully mediated a dispute between delivery service platform 'Broom' and franchise restaurants, resulting in improvements to service terms that could disadvantage franchisees and consumers.

Gyeonggi Province received a public interest report in June through a person identified as A. According to the report, A, who operates a restaurant, refunded 100% of the meal cost to a consumer due to incorrect delivery by a delivery driver—not due to any fault of the restaurant. However, after receiving only 50% compensation from delivery platform Broom, A filed a public interest report with the province.

After reviewing Broom's service terms, Gyeonggi Province identified some unreasonable provisions and requested the company cooperate on improving them, leading to partial revisions.

According to the changes, Broom will now compensate for damages by calculating compensation based on the product value and considering the fault ratio in cases where goods are damaged or lost due to the driver's intentional or negligent conduct. Previously, the terms stipulated that the company would bear liability for damages but base compensation at 50% of the product value.

Additionally, compensation payments will be settled separately from delivery fees as a principle. Following the standard delivery terms, if a store or consumer fails to claim compensation within 14 days from the date of damage, the company's liability will be extinguished. Previously, stores and consumers were required to file compensation claims within 7 days of the damage.

Broom plans to revise its terms with the improved content within the near future and notify and apply these changes to all partner stores nationwide.

Kim Ji-ye, head of Gyeonggi Province's Fair Economy Division, stated: "Going forward, we will promptly process public interest reports and civil complaints from fair trade dispute consultations so that Gyeonggi Province can lead in establishing an autonomous fair trade order."