Cha & Kwon Law Offices advised a business seeking to sell subscription-based consumer goods linked to an app-based service through a long-term installment payment structure, and reviewed the ownership structure of the products and the applicability of regulations concerning continuing transactions.

The business model involved users making installment payments for consumer goods over an extended period while using the products and continuously receiving related services. Accordingly, the key issues reviewed included the timing of transfer of ownership, the return of products and settlement procedures upon early termination, and whether consumer protection provisions applicable to continuing transactions would apply.

Cha & Kwon Law Offices examined the structure with a focus on the timing of product delivery and full payment of the purchase price, as well as the contractual provisions governing the transfer of ownership. The firm also analyzed the contractual and terms and conditions requirements that would need to be addressed if the transaction were structured as an installment sale with retention of title. In addition, on the assumption that the arrangement could constitute a continuing transaction, Cha & Kwon Law Offices reviewed considerations relating to contract termination, settlement, and user protection.

Through its work on subscription-based sales models, Cha & Kwon Law Offices provides practical legal advice aimed at establishing and refining contractual and terms and conditions frameworks while taking into account both the underlying sales structure and applicable consumer protection regulations.