[Exclusive] Court says to Yanolja, which refused refund, “Refund even if canceled after 10 minutes”

Yanolja refuses refund if reservation is canceled 10 minutes after payment... consumer litigation
Court recommends Yanolzawa Hotel pay half of the claim amount

Yanolja, which refused to refund the reservation deposit, will now refund the deposit. The court found Yanolja's rule that refunds are only possible when cancellation is made within 10 minutes of payment through the accommodation app as unfair.

On the 14th, the Seoul Central District Court made a decision recommending reconciliation, ordering Yanolja and one other person (hotel) to pay half of the plaintiff's claim. The payment deadline is the 20th of this month.

Plaintiff A, who filed the lawsuit, purchased a hotel accommodation ticket through the Yanolja app in October 2023, but tried to cancel the accommodation contract because the schedule was changed within two hours. Yanolja responded to the plaintiff, saying, “It is possible to cancel the reservation, but a cancellation fee equivalent to 100% of the reservation deposit will be incurred.” In fact, cancellation was impossible.

Mr. A requested a refund again, citing that not much time had passed, but Yanolja stated, "No cancellation fee will be incurred only if cancellation is made within 10 minutes of reservation. If cancellation is made after that, no refund is possible without any exception."

The court recommended, “Pay half of the plaintiff’s claim amount by the 20th of this month, but if the deadline is exceeded, delay damages should be added at 12% per annum.”

Related industries believe that the court is essentially acknowledging that Yanolja's regulations are a violation of the Electronic Commerce Act. It was judged that the rule that a full refund is only possible if cancellation is made on the application screen within 10 minutes of payment, and a 100% cancellation fee is charged after 10 minutes, was unfair.

Attorney Kim Jin-woo of Daeryun Law Firm, who represented the lawsuit, explained, "I understand that if a refund is made with a short period of time left before the reservation date, Yanolja will have no time to resell the product, but 10 minutes is too short. Being able to cancel only within 10 minutes is extremely advantageous to the seller and unfavorable to the consumer."

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