Seoul: The fair trade watchdog on Monday introduced standard contract terms for yoga and Pilates lessons, including refund guidelines, amid a growing number of consumer disputes in the sector. The Fair Trade Commission (FTC) has developed these terms to address the rising concerns among consumers about unfair refund practices and unexpected business closures in the industry.

According to Yonhap News Agency, the FTC's standardized terms aim to provide a framework for businesses to follow, despite not being legally binding. These terms were introduced in response to a significant increase in consumer complaints received by the Korea Consumer Agency, which reported 1,211 complaints in 2024, up from 818 in 2021. The FTC's investigation revealed that many disputes arose due to ambiguous refund policies and practices that were often unfavorable to consumers.

The newly established contract terms require that when customers decide to cancel their enrollment, the cancellation fees must be based on the actual amount paid rather than the original price before any discounts. The guidelines also mandate that businesses must clarify whether refunds are calculated by the number of lessons taken or the duration of the enrollment period. This transparency is expected to ensure that customers are fully aware of the refund calculation method before committing to a contract.

Moreover, the guidelines stipulate that businesses intending to suspend operations or close permanently must notify customers at least 14 days in advance. This measure aims to help prevent financial losses for consumers due to unforeseen business closures. Additionally, businesses that offer guarantee insurance are required to inform customers of the policy type and coverage before they make a purchase decision.

"The standardized contract terms for the yoga and Pilates industry are expected to reduce disputes between businesses and customers, improving trust and predictability," the FTC stated, highlighting the anticipated positive impact on business-consumer relationships in the industry.