Gyeonggi Province mediates delivery service 'Brung' to change unfavorable terms for franchisees and consumers

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province announced on the 14th that it mediated a dispute between delivery service 'Brung' and a franchisee to improve service terms that could disadvantage franchisees and consumers.

In June, Gyeonggi Province received a public interest report through A, a restaurant operator. According to the report, A refunded 100% of the food price to a consumer due to a misdelivery by a delivery driver, not the restaurant's fault. However, after receiving only 50% compensation from delivery service Brung, A filed a public interest report with the province.

After reviewing Brung's service terms, Gyeonggi Province identified some unreasonable provisions and requested cooperation from Brung to improve the terms, achieving partial amendments.

According to the changes, Brung will now compensate damages based on the product value and calculated considering the negligence ratio when products are damaged or lost due to the driver's intentional or negligent acts. Previously, the company was responsible for compensation on the basis of 50% of the product value.

Additionally, the compensation will be settled separately from delivery fees as a general rule. Applying standard express delivery terms, if a store or consumer does not claim compensation within 14 days from the date of damage, the company's liability for compensation will be extinguished. Previously, stores and consumers were required to claim compensation within 7 days from the date of damage.

Brung plans to change its terms to reflect the improvements in the near future and notify and apply them to affiliated stores nationwide.

Kim Ji-ye, director of the Fair Economy Division of Gyeonggi Province, said, "Going forward, we will promptly handle civil complaints from public interest reports and fair trade dispute consultations so that Gyeonggi Province can take the lead in establishing autonomous fair trade order."