Seoul: A cancellation fee for failing to show up for a restaurant reservation is expected to be significantly increased later this year, the antitrust watchdog said Wednesday.
According to Yonhap News Agency, under a revised law currently pending administrative notice, no-show fees for missing a reservation without notice will be raised from the current 10 percent of the total bill to a maximum 20 percent, as stated by the Fair Trade Commission (FTC).
In addition, restaurants that require advance reservations to prepare ingredients, such as omakase and fine dining establishments, will be allowed to impose a cancellation fee of up to 40 percent, the FTC elaborated. Restaurants that are not classified as reservation-based establishments will also be allowed to charge up to 40 percent in cancellation fees for large orders, provided the terms are clearly disclosed to customers in advance.
"The current 10 percent cap on cancellation fees is too low, which has led to some abusive consumers deliberately making and missing reservations repeatedly," an FTC official remarked. The revised regulations are anticipated to go into effect by the end of the year, following the required administrative notice period.