French fashion brand Christian Dior is getting criticisms from a growing number of consumers unsatisfied with its sales policy. After its latest price hike, the company told customers Tuesday to pay more for their placed order which they are yet to receive, The Korea Times reported.
Those who are just waiting for the items they ordered are told to withdraw the money they paid previously and reorder the new merchandise with increased pricing.
The fashion brand is among LVMH-owned brands which also include Givenchy, Louis Vuitton, Fendi and Celine.
The price increase and the refund policy were not made known to customers before their purchase. Dior, however, said that it just implements the decision of its head office. Customers, they said, have to pay more or cancel their orders.
“I really don’t like the way Dior is treating its Korean customers. I don’t understand why I have to pay more after the price hike, so I asked for a refund,” complained one of its customers interviewed by a local media outlet.
Refunds were also offered by the company but in company credit instead of cash, allowing buyers to only buy products at its stores. There are also some who are left without choice to pay more for their items and can only get credit points because the merchandise they already paid for are not available in Korea.
“Dior thinks Korean customers are sitting ducks. We should report this case to the Korea Consumer Agency,” one customer said online.
According to a legal expert, the company’s policy could be a violation of local law.
“Normally, customers receive their products upon purchase. However, in the case of some luxury brands, they tend to settle payments first and order items that are out of stock at the stores. This can be seen as one type of pre-contract between a brand and its customers,” Barun Law’s lawyer Baek Gwang-hyeon said. “In the case of Dior, it is forcing a change to a closed deal with customers for inappropriate reasons. It can be seen as breach of contract.”