Fair Trade Commission imposes 2 billion won fine on Ali... Violation of E-Commerce Act and Advertising Act

[Financial News] The overseas direct purchase platform 'AliExpress' was fined over 2 billion won by the Fair Trade Commission for false discount advertisements targeting domestic consumers.
 The Fair Trade Commission announced on the 31st that it imposed a total fine of 2.093 billion won along with a corrective order for violations of the E-Commerce Act and the Advertising Act by the operator and affiliates of 'AliExpress'.
 This action was taken as it was revealed that the operator of AliExpress, △Alibaba.com Singapore E-Commerce Private Limited (Alibaba Singapore), △AliExpress Korea Holding (AliKorea Holding), and △AliExpress Korea LLC (AliKorea) committed multiple violations such as failing to provide identity information to consumers, omitting telemarketing business registration, and false discount advertisements.
 According to the Fair Trade Commission's investigation, Alibaba Singapore, as the operator of the 'AliExpress' cyber mall, △did not display identity information such as business name, representative, and contact information on the initial screen, △omitted telemarketing business registration for a long period, and △did not provide information about sellers in advance to consumers, confirming multiple violations of the E-Commerce Act.
 Also, it was revealed that AliKorea, a domestic corporation, did not properly provide identity information and seller information to consumers on its operated sub-channel 'K-Venue'.
 The Fair Trade Commission imposed a fine of 1 million won each, totaling 2 million won, along with a prohibition order to these businesses. In addition, the same corrective order was issued to AliKorea Holding, which will take over the operation rights for domestic consumers from April 1, 2025.
 In addition, it was confirmed that AliExpress affiliates △Oceansky and △MICTW violated the Advertising Act by posting a large number of false and exaggerated discount advertisements.
 These businesses advertised products with no previous sales history by presenting a 'pre-discount price' and expressing the difference with the actual selling price as a 'discount rate', misleading consumers into thinking there was a higher discount benefit than actually existed.
 The Fair Trade Commission pointed out, "It is misleading consumers by setting an arbitrary price as the regular price without a transaction price basis within the last 90 days."
 A fine of 90 million won was imposed on Oceansky, and 2.03 billion won on MICTW, totaling 2.093 billion won. Both companies were also given a public announcement order for four days.
 The Fair Trade Commission stated, "As long as overseas platforms operate in the domestic market, the E-Commerce Act and the Advertising Act will be applied with the same standards," adding, "This action is to induce global platform operators to faithfully fulfill their legal obligations and to prevent actions that distort the rational choices of domestic consumers." It emphasized, "We will continue to respond to illegal activities without distinction between domestic and foreign." 


imne@fnnews.com Hong Yeji Reporter