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An image of an Apple Korea repair centre

The Fair Trade Commission (FTC) issued orders to correct what it deemed unfair terms in a contract between Apple Korea and domestic iPhone repair service providers.

The FTC announced on Apr. 21 that Apple Korea had “verified and corrected a total of 20 unfair terms in its service commission and consignment contract with six authorized repair businesses.”

The contract for authorized Apple service providers included terms allowing Apple Korea to void or change its content at any time without prior notice to the businesses and to refuse any or all repair business orders at its own discretion. It also waived any responsibility for Apple Korea’s failure to supply repair businesses with parts or refurbishment products in a timely manner.

“A contract based in unfair terms leads to inconveniences to the consumers who are having their iPhone products repaired,” the FTC concluded.

“In the future, failure to receive full orders may only be allowed in cases where there are reasonable grounds, and Apple Korea will be liable for any delays in delivery,” it added.

The FTC also ordered the removal of terms stating that the English-language contract could not be translated into Korean.

The FTC’s correction order marks the first instance of its kind in any country where Apple sells the iPhone. The FTC previously used a correction order last year for unfair transaction terms between six authorized iPhone repair centers and their customers. The investigation was expanded to include Apple Korea amid an ongoing debate over what many called “high-handed” service practices.

By Kim Sung-hwan, staff reporter

Please direct questions or comments to [english@hani.co.kr]