Court voids Yanolja's same-day cancellation clause, orders 90,000-won refund

A court has ruled invalid a terms-of-service clause by travel platform Yanolja that allowed fee-free cancellations of airline tickets only on the day of purchase. The ruling found the clause unlawful under the Electronic Commerce Act, which requires a full refund when a consumer withdraws a purchase within seven days.

According to legal sources, the Suwon District Court's Civil Division 7, presided over by Judge Shin Gyo-sik, ruled Friday in favor of a Yanolja member identified only as A in a second-instance lawsuit seeking the return of a 90,000-won ($60) cancellation fee. The ruling matched the first-instance decision issued June 17 and is now final. Despite the court's finding, Yanolja has not amended the clause at issue.

A purchased a round-trip flight between Incheon and Okinawa through the Yanolja app in 2023 for around 300,000 won. The following morning, around 11 a.m., A requested a refund. Yanolja charged a cancellation fee of 90,000 won.

The charge was applied under Yanolja's terms of service, which state that airline tickets may be canceled free of charge only until 11:50 p.m. on the day of purchase. Any cancellation after that point is subject to fees in accordance with the airline's fare rules.

Believing the charge was unjust, A filed suit against Yanolja in September 2024 seeking a full refund.

During the trial, A's side argued that the clause was invalid because it conflicted with the Electronic Commerce Act and was disadvantageous to consumers.

Yanolja rebuffed the claim, saying the ticket had been purchased at a steep discount from the standard price and that A had benefited from that discount, making it difficult to characterize the clause as unfavorable to consumers. The company also argued it was merely an intermediary, not a direct seller, and therefore not subject to the Electronic Commerce Act.

Both the first and second courts ruled in A's favor, finding Yanolja's clause invalid.

In its ruling, the appeals court said the Electronic Commerce Act's recognition of the right to withdraw a purchase exists because businesses hold a superior position over consumers in terms of information, economic power and the ability to shape contract terms. The court noted that consumers are prone to impulse purchases driven by aggressive sales tactics, and the law is designed to give them a chance to reconsider.

The court added that if the clause were valid, Yanolja would suffer no real loss, yet the consumer's statutory right to reconsider an impulse purchase would be effectively circumvented, producing an unreasonable outcome.

The court also said that even accounting for the particular nature of airline tickets, 149 days remained between the cancellation date and the departure date, leaving ample time for the ticket to be resold.

The court also rejected Yanolja's argument that it was merely an intermediary and not a party to the direct sales transaction.

The appeals court noted that the Yanolja app displays all relevant information about a ticket — including price, details and contract terms — and that both booking and payment are completed entirely within the app. The court also observed that A had no need at any point during the purchase process to visit the airline's website or contact the airline directly.

The court said that from the consumer's perspective, Yanolja occupies a position equivalent to that of a direct seller, noting that the platform directs customers to handle all change and cancellation requests through Yanolja rather than through the airline.

Taking these factors into account, the appeals court concluded that Yanolja could not be viewed as merely passing along payment to a direct seller on the consumer's behalf.

The ruling became final July 3 when the second-instance decision was confirmed. Despite the court's ruling, Yanolja continues to enforce the clause allowing free cancellations only on the day of purchase.