"Shinsegae Says It Is in Talks With the Government Over Starbucks Card Refunds" ... FTC: "That Never Happened"

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[The Financial News]  Shinsegae Group said it was discussing revisions to the standard terms and conditions with the Korea Fair Trade Commission (KFTC) over refunds for Starbucks prepaid balances, but the government reportedly pushed back, saying, "There has been no such consultation."
Jeon Sang-jin, Shinsegae Group's executive vice president in charge of management, announced the results of an internal probe into Starbucks' "May 18" marketing at Josun Palace, a Luxury Collection Hotel, Seoul Gangnam, on the 26th. Asked whether Starbucks prepaid balances could be refunded, he said, "I understand many customers are demanding refunds and membership cancellations," adding, "We are trying to improve things in the direction customers want."
He explained, "Under the standard terms for gift certificates of a new type, refunds are only possible after a certain percentage has been used," and added, "We are discussing this with the relevant ministries." He also said, "We need to adjust the system to process refunds on site," and added, "We are preparing to take action as soon as possible and will make an announcement later."
The remarks came shortly after Chung Yong-jin issued a public apology over the controversy surrounding Starbucks' "Tank Day" earlier that day.
Kyunghyang Shinmun reported the Fair Trade Commission's response to Shinsegae's explanation.
A KFTC official said, "In relation to the recent issue of revising the standard terms and conditions, we did contact several companies, including Starbucks, to ask their representatives about the industry situation," but added, "We have not separately discussed the standard terms and conditions with Starbucks."
The official added, "The standard terms and conditions are not mandatory rules, but guidelines that businesses refer to voluntarily," and explained, "Starbucks' current gift certificate terms do not fully follow the standard terms either."
However, the KFTC is reportedly planning to review revisions to the relevant standard terms and conditions after gathering opinions from companies and consumer groups.
y27k@fnnews.com Seo Yoon-kyung Reporter