11st "Comparing Only Maximum Sales Fees... Misleading and Distorting Actions"
Coupang "Comparison Based on Public Data... No Issue with Specified Criteria"
11st announced on the 16th that it reported Coupang to the Fair Trade Commission for violating the Act on Fair Labeling and Advertising and the Electronic Commerce Act by comparing its own sales commission with Coupang's.
11st explained the background of the report, saying, "On the 3rd, Coupang posted a statement of regret through its newsroom regarding a January 2nd media report titled 'Small and Medium Sellers Trapped in Coupang's Swamp.' They refuted the claim that 'Coupang takes a 45% commission' and provided a misleading comparison by adjusting 11st's sales commission to standards favorable to Coupang in order to argue that their commission is lower, causing potential misunderstanding among customers."
Sales commissions are amounts paid by sellers to e-commerce companies when selling products through online platforms. According to 11st, each e-commerce business sets different commission rates by category based on product price, sales volume, and other factors.
According to the data disclosed by Coupang at the time, 11st's maximum sales commission reached 20%. The maximum sales commissions for Shinsegae (Gmarket, Auction) and Coupang were 15% and 10.9%, respectively.
11st claimed that Coupang distorted the comparison by only comparing the maximum sales commissions applied to some products, making it appear as if 11st's overall sales commission was excessively higher than Coupang's. They explained that this violated Article 3 of the Act on Fair Labeling and Advertising, which prohibits unfair labeling and advertising practices.
Additionally, 11st added that it violated Article 21 of the Electronic Commerce Act, which prohibits misleading consumers by providing false or exaggerated information or using deceptive methods, as it caused misunderstanding that 11st's overall sales commission was high.
11st emphasized that the nominal commission rate of 20%, which Coupang mentioned as 11st's maximum sales commission, applies only to 3 out of 185 product categories on 11st. These categories are designer men's clothing, designer women's clothing, and designer accessories. The nominal commission rates for the other 180 categories range from 7% to 13%, they explained.
11st stated, "We decided to report this as it is a serious matter that significantly affects corporate image and the attraction of sellers and customers," and added, "We hope that through the Fair Trade Commission's strict judgment, a fair competitive environment and a proper market environment can be established."
However, Coupang maintains that there is no problem as the notice was prepared based on disclosed data. A Coupang official said, "The notice was prepared based on each company's disclosed data, and the criterion of 'maximum sales commission' was clearly specified, so we believe there is no issue."
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