Preventing ‘Additional Charges Bomb’ and Specifying Penalty Standards
The Fair Trade Commission (FTC) has developed a standardized contract to prevent ‘blind agreements’ in the wedding planning industry. This contract requires that the services and prices for studio photography, dress rentals, and makeup—commonly known as ‘Sdeume’ items—be clearly stated in advance, with the aim of preventing harm to couples getting married through outlining specific penalty standards.
On the 3rd, the FTC announced that it has established and will implement a standard contract to improve unfair contract practices in wedding planning services and reduce consumer harm. This measure follows last year’s ‘Youth-Friendly Service Development Plan’ and responds to the rapid increase in consumer complaints related to wedding preparation services, which rose from 790 cases in 2021 to 1,293 cases in 2023.
The FTC conducted a six-month study to evaluate the structural issue where couples entering contracts do not have clarity on individual service prices due to ‘package contracts.’ It highlighted frequent cases where additional options like purchasing photo files, dress fitting fees, and early start makeup costs lead to unexpected ‘additional charges bombs.’
The new standardized contract allows couples to view basic services (studio, dress, makeup) and optional items at a glance on the contract cover. A separate price list details costs, and service providers must explain these if requested by the user. The FTC expects that providing accurate price information at the time of contract will help reduce cost disputes afterward.
The penalty issue has also been addressed. Previously, unclear penalty standards upon contract termination caused frequent conflicts; the new terms differentiate penalty standards based on the reason and timing of the contract termination. After selecting partner companies, the terms for penalties must be re-notified and consumer consent obtained.
However, individual wedding service providers remain outside the scope of regulation. Studios, dress shops, and makeup service providers who offer the actual services are not subject to this regulation.
The FTC plans to post the standard contract on their website and encourage its use across the industry. An FTC representative stated, “We plan to actively provide education to the industry to ensure the standard contract is quickly and smoothly adopted in practice.”