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| ▲ A file photo of Mergepoint (Yonhap) |
prepaid service-damages suit
Discount app Mergepoint ordered to compensate users over abrupt withdrawal of services
SEOUL, Sept. 1 (Yonhap) -- A Seoul court ruled Friday in favor of users of Mergepoint, a once-popular online discount app, in a collective compensation suit they filed over the app's abrupt withdrawal of most of its services.
Mergepoint gained huge popularity in South Korea for its discount service, in which consumers could buy items or eat out with Mergepoints at a 20 percent discount off the regular price and use them at about 60,000 places nationwide, like retail chains, convenience stores and coffee shops.
Its operator abruptly announced in August 2021 that sales of Mergemoney, the service's currency, would be halted, while the number of retail stores accepting the currency would be reduced, a decision that immediately led to users' rush for refunds.
A total of 148 users have since lodged a lawsuit against Mergeplus, the operator of Mergepoint, and others, demanding 200 million won (US $151,885) in compensation.
The Seoul Central District Court on Friday ruled against Mergeplus, its CEO Kwon Nam-hee and an affiliate. Kwon and the two companies are expected to pay the compensation together to the plaintiffs.
The court, however, found that Lotte Shopping Co. and five other online shopping malls accused of selling the virtual currency were not liable.
Previously, Kwon and her younger brother Bo-gun, who served as the firm's chief strategy officer, were given prison terms of four years and eight years, respectively, on charges that included fraud.
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