Fair Trade Commission warns online mall 'Balan'
Mustit, Trenbe also under investigation
A luxury platform company that deceived consumers by changing the price from 300,000 won to 800,000 won when clicking on a product listed for sale online was warned by authorities.
According to government authorities on the 20th, the Fair Trade Commission issued a warning on the 12th through a review officer’s decision regarding 'Balan' for inducing consumers by providing false or exaggerated information (violation of the Electronic Commerce Act).
According to the Fair Trade Commission’s investigation, Balan attracted consumers by displaying a specific brand sneaker A for sale at around 300,000 won on its online mall.
However, when consumers actually tried to purchase the product and entered the detailed page, only one size marked in the US style was priced at that amount, while the other sizes marked in the Korean style were priced at 700,000 to 800,000 won, which is double the price.
Also, the discounted US size option was out of stock and unavailable for purchase, but the same size product in Korean sizing was available for purchase.
For example, US size 6 was sold out, but the same size 240 in Korean sizing could be purchased at twice the price.
This consumer inducement by Balan can be seen as a type of 'dark pattern' (deceptive sales tactic), where hidden prices are revealed additionally during the purchasing process.
However, the Fair Trade Commission only issued a warning considering that Balan voluntarily corrected the illegal act.
Balan explained, "We discovered the issue last December and requested an explanation from the seller, and the matter has already been corrected. To avoid consumer confusion, we now internally investigate product prices and request explanations from sellers if the difference between the lowest and highest prices of the same product exceeds 20%. If no explanation is provided, penalties are imposed."
Balan held a 17% discount coupon event last year following its appearance on the YouTube show 'Nego King,' but some sellers raised product prices just before the event, causing controversy over consumer deception.
At that time, Balan explained it was an error during the update process but received criticism from many consumers. Even afterward, controversies continued as products were sold at prices higher than the official prices listed on luxury brand websites while appearing to offer discounts.
The Fair Trade Commission is also investigating whether major luxury sales platforms such as Balan, Must It, and Trenbe restricted consumers’ rights to withdraw from contracts or excessively charged cancellation fees.
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