Fair Trade Commission takes corrective action on ‘no refunds after 30 days’ comment |

‘Speak’, an English learning service based on artificial intelligence (AI), was caught operating unfair terms and conditions that limit refunds for long-term subscriptions.

On the 25th, the Fair Trade Commission announced that as a result of reviewing Speak Easy Labs Korea’s Speak service terms and conditions, it discovered an unfair provision that prohibited refunds after 30 days from the subscription payment date and ordered it to be corrected.

According to the Fair Trade Commission, Speak, an English learning conversation app, is so popular in Korea that the cumulative number of downloads exceeds 5 million, but it has been operating a policy that refunds are not possible after 30 days from the date of payment. While providing subscription services at prices such as 29,000 won per month, 129,000 won per year, and 450,000 won for life, refunds for long-term subscriptions are limited.

The Fair Trade Commission ruled that Speak’s subscription is a ‘continuing transaction’ that provides continuous service for more than one month, so it should be able to be canceled at any time and refunds should not be unfairly refused.

In response to these comments, Speak has decided to implement revised terms and conditions starting from January next year, allowing full refunds within 7 days of the payment date, and refunding the amount minus service usage and penalties thereafter. An official from the Fair Trade Commission explained, “This is a measure that reasonably protects consumer rights related to subscriptions while also requiring operators who provide services globally to fulfill their obligations under domestic laws.”