Tuesday, 02 January 2024 12:17 GMT

S. Korea Slaps AliExpress with USD1.5M Fine Over False Discount Advertising


(MENAFN) South Korea’s Fair Trade Commission (FTC) has slapped Chinese e-commerce giant AliExpress with a fine of nearly 2.1 billion won (about $1.5 million) over deceptive discount claims, according to a report from a Seoul-based news agency.

The FTC found that AliExpress breached fair advertising and labeling regulations on its platform, ordering immediate corrective actions. The investigation revealed that two AliExpress subsidiaries posted misleading advertisements more than 7,500 times between May 2023 and October 2024. These ads showcased inflated “original” prices that were never genuinely offered, thereby fabricating exaggerated discount rates.

For instance, a tablet priced at 270,000 won was falsely promoted with an original price tag of 660,000 won, implying a 58% discount that never existed.

The regulator condemned the tactic, stating it "distorted reasonable purchasing choice" by misleading consumers about actual prices and savings, thereby overstating the economic benefits.

In addition to the main penalty, the FTC imposed a separate fine of 2 million won on AliExpress for failing to provide clear disclosure of its operators’ personal information and terms of service on its website.

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