[Exclusive] Children's Product Recall … Government Says "Hazardous," Coupang Says "Refund Request Unavailable"

After the government discovered lead levels exceeding safety standards by over 11 times in children's products sold on Coupang and issued a "collection and exchange order," it was found that Coupang does not allow consumers to even request an exchange or refund for the recalled products.

According to Coupang and the Korea Fair Trade Commission on the 21st, the National Institute of Standards and Technology added a total of 53 products, including children's rain boots, to the recall list on the 23rd of last month and issued collection orders.

The total lead detected in the children's rain boots was 1,033 mg/kg, which is 11.4 times higher than the standard of 90 mg/kg or less. The Product Safety Information Center advised that exposure to lead could potentially cause dermatitis, keratitis, and central nervous system disorders.

The Product Safety Information Center instructed consumers holding the product to immediately stop use and contact or visit the business to receive repairs, exchanges, or refunds.

Coupang also sent an email to the product purchasers notifying them of the recall. The email specified not only the product name and business name but also the purchaser's order number and order date, and included information about the potential hazard from lead exposure.

The problem emerged in the subsequent collection and refund process.

When a purchaser attempted to return the product from their Coupang order history, the request was impossible to submit due to more than 30 days having passed since purchase. Coupang instructed purchasers to contact the seller directly to receive guidance on product collection and refunds.

In its email, Coupang stated: "If you confirm that the product you currently possess falls under the recall target, please immediately cease consumption or use and contact the seller to receive detailed guidance on product collection and refund regardless of whether the product was used."

When the purchaser contacted the seller, the seller required submission of a screenshot of the Coupang order history. The seller also separately requested not only the address for product collection, contact information, and recipient name, but also the bank and account number for the refund.

This was because instead of canceling the existing payment made through Coupang, the seller would refund by directly transferring money to the purchaser's account.

In this process, the purchaser received no separate notification regarding the purpose or retention period of personal information collection and use.

Article 15 of the Personal Information Protection Act sets requirements for collecting and using personal information and requires that when consent is obtained, the collection purpose, items, and retention and use period be communicated to the information subject.

The purchaser searched for and paid for the product on Coupang, then received a recall notice from Coupang with their specific order number identified, but at the stage of returning the product and receiving the refund, they had to follow separate procedures outside the Coupang system.

The purchaser stated: "In order to receive a refund, I have no choice but to provide information and transfer account numbers, but I am anxious because I don't know how that information will be managed afterward. It's difficult to understand why consumers must follow separate refund procedures with the seller outside of Coupang for a product purchased and paid for through Coupang, especially when the government has issued a recall order."

Current law separately stipulates the government's recall measures for hazardous products and the procedures for withdrawal of offer and refunds that consumers can exercise in online transactions.

A "collection order" was issued by the National Institute of Standards and Technology for the product in question. The Product Safety Information Center instructed consumers holding the product to immediately cease use and contact or visit the seller to receive repairs, exchanges, or refunds.

Consumer rights in online transactions are separately stipulated in the E-Commerce Act. Article 17, Section 3 of the E-Commerce Act stipulates that if the content of goods differs from what is displayed or advertised, or if the contract is performed differently, consumers may withdraw their offer within 3 months from the day of receiving the goods and within 30 days from when they knew or should have known of the fact.

For this product, less than 3 months had passed since the purchaser received it, and less than 30 days had passed since being notified of the recall by Coupang and learning of the non-conformity with safety standards.

However, Coupang blocked even the request for exchange or refund itself, citing that more than 30 days had passed since purchase. Unlike the E-Commerce Act, which sets standards of 3 months from product supply date and 30 days from when the problem was discovered, Coupang's exchange and return request pathway was closed.

The refund procedure following withdrawal of offer is also stipulated in law.

Article 18, Section 2 of the E-Commerce Act stipulates the obligation to refund payment following withdrawal of offer, and the scope of "remote sales business operator" includes "a person who has received payment from a consumer for goods or a person who has entered into a contract regarding remote sales with a consumer."

Section 3 of the same article stipulates that if a consumer pays through a payment method specified in the law such as a credit card, the remote sales business operator must request the payment operator to suspend or cancel billing. Section 11 stipulates that if the remote sales business operator and the person who has received payment for goods or the person who has entered into a remote sales contract with the consumer are not the same, they bear joint liability for performing obligations under Article 18.

However, the refund for this recalled product was not accomplished through canceling the existing payment made through Coupang. Coupang directed the purchaser to contact the seller directly, and the seller obtained the purchaser's account number separately and refunded by directly transferring money.

In effect, apart from the seller's collection and exchange measures pursuant to the government's recall order, despite the existence of a withdrawal of offer and refund procedure as stipulated in the E-Commerce Act for online transactions, Coupang directly notified the recalled product purchaser with their specific order number identified while simultaneously blocking the exchange and return pathway through the Coupang system and the refund pathway through the existing payment method.

Coupang stated that regarding the application of relevant laws and Coupang's responsibility, beyond its existing explanation that collection and refunds following recall are handled by the seller, there is "no separate official response."

전시언 기자 yourside@news-s.kr