Seoul airs warning about YouTube-sharing scams

Users who purchased "subscriptions" for out-of-country Family Pass account access have fallen victims to scams, prompting the city of Seoul to call for precautions.

The Seoul Metropolitan Government announced Tuesday that consumers should take precautions against third-party YouTube-sharing subscriptions. [PXHERE]

The Seoul Metropolitan Government announced Tuesday that consumers should take precautions against third-party YouTube-sharing subscriptions due to a recent increase in related damages for users.

Last December, YouTube raised the prices of its Premium subscription service, which allows users to watch videos without advertisements.

Its monthly price increased to 14,900 won ($ 11.20) from 10,450 won, a nearly 43 percent hike.

As a result, some users began purchasing subscriptions from third-party service providers at more affordable rates as the prices are 80 percent cheaper than the official subscription fee.

According to the Seoul Electronic Commerce Center, 98 reports were received claiming damages against YouTube Premium subscription-sharing websites from January to Feb. 18, up 16.3 times from last year's 6 reports.

Damages due to contract alterations or a breach of contract accounted for 80.8 percent, taking the highest proportion at 84 reports.

A total of 14 reports were received over the operation being suspended, closed or out of contact, accounting for 13.5 percent.

Reports of contract cancellations, returns, or refunds came next, with four reports taking over 3.8 percent.

The online agencies sold a six-month or yearlong YouTube Premium subscription for a much more affordable price by using VPNs to subscribe to the Family Plan offered only in some countries. Then, they asked for the consumer’s account information and added them as a family member to the seller’s account.

The fraudulent sellers violated their contracts by cutting access shortly after registering the consumer’s account and then becoming unresponsive.

Some sellers used Naver Smart Stores, an online shopping platform operated by web portal Naver, and abused the platform's payment system that finalizes transactions after consumers confirm their purchases.

“Using sharing accounts that access services not officially provided in Korea can cause damage at any time due to many abnormal channels, such as violations of the company's policies and terms,” an authority from the Seoul city government overseeing fair trade said to the JoongAng Ilbo. “We will work on protecting consumers by enforcing the monitoring system and explaining preventative measures.”

BY HAN JEE-HYE [kim.jiye@joongang.co.kr]