Yulchon Successfully Defends Agoda in Korean Supreme Court
2023.09.21.
Yulchon successfully defended Agoda Company Limited ("Agoda") in a Korean Supreme Court appeal filed by the Korea Fair Trade Commission ("KFTC"). The underlying case originated in 2016 when the KFTC initiated an investigation into the terms and conditions imposed by online travel agencies (“OTAs”) on Korean consumers. The regulator found that these terms and conditions, in violation of the Korean statute governing contracts of adhesion, essentially required Korean consumers to bear excessive liability in the form of “non-refundable” reservations for hotels and other accommodations.
In response, most of the targeted OTAs voluntarily removed non-refundable accommodation listings from their platforms in 2017. However, Agoda chose not to take similar remedial action. The KFTC subsequently ordered Agoda to remove its non-refundable listings. In 2019, representing Agoda, Yulchon challenged the KFTC order in Seoul High Court, arguing that the complete removal of non-refundable accommodation offers would reduce – rather than enhance – consumer welfare and harm the interests of accommodation service providers as well. The Seoul High Court agreed, vacating the KFTC order entirely in 2021.
The KFTC appealed, but the Supreme Court affirmed after a two-and-a-half-year review. Throughout the High Court and Supreme Court actions, Yulchon relied on empirical analysis to highlight the unique characteristics of digital platforms and to demonstrate their impact on consumer welfare.
_AD_2755413_1.JPG)
