¡®Package¡¯ consumer damage system in works

A ¡°package¡± compensation system will be implemented from next year for consumer damages caused by false or exaggerated advertising, breach of contract or illegal price fixing. The formula features the solution of consumer damage cases in bulk.

The Fair Trade Commission announced Friday that it would introduce the new system to effectively handle consumer damages claims, which are sharply increasing in number these days following the growth in e-commerce transactions.

The FTC will collect regularly consumer complaints filed with consumer organizations such as the Board of Consumer Protection and will screen whether or not the accused violated related laws on advertising or door-to-door sales. The results of the reviews will be provided to the consumer organizations for the package compensation, an FTC official said.

If businesses make due compensation to consumers based on the consumer organizations' mediation, the FTC will alleviate punishment, such as reduction of fines. Otherwise, the punishment will be strengthened to raise the efficiency of the system, the official said.