[News Today] UNRELIABLE MEDIATING PLATFORMS

[LEAD]
Many turn to internet platforms now to find all sorts of services, including interior design firms. However, incidents of contractors taking payments and vanishing are on the rise. The government has proposed solutions, but their effectiveness remains questionable.

[REPORT]
In May this year, Yang Jung-mi asked around about interior design companies as she was planning to open a restaurant.

She got in contact with one firm through an online platform service app.

Yang Jung-mi / Scammed by interior company
It had all the info in one place so I didn't have to look separately. The experts also come to the site right away.

As down payment, she sent 18 million won(USD 12,500), but on the day construction was supposed to begin, no one showed up.

The contractor was a fraud suspect wanted by the police.

Customer center at ○○ platform / (VOICE MODIFIED)
(Can you now stop this individual from doing business?)
Such suspension is private info and not publicly announced.

Under current law, telemarketing businesses must abide by a number of consumer protection measures.

However if they are categorized as a mediator, they are exempt from most of these obligations.

Customers trust the platform from which they choose a service company but in fact, the platforms are just the middlemen who are not obliged to protect consumers.

The Fair Trade Commission has decided to sign an autonomous agreement with four such intermediary platforms who connect consumers to interior design companies.

Under the deal, the platforms will block firms with a history of monetary extortion from being exposed on the site while highlighting firms formally registered as a builder with a special badge.

Cho Hong-sun / Vice chair, Fair Trade Commission
In untact transactions, trust between market participants is most vital. Hopefully, the mediators market can become more reliable.

However the agreement which comes amid snowballing consumer damage is not binding, seen as a key limitation.

Even under the new arrangement, there's still no way for consumers to find out if a company deceived clients in the past or their service was on par.