Only One Winner for the "Nintendo 999 KRW Event"
Deceptive Practices in Coupon and Refund Conditions
The online shopping platform Temu, which enticed consumers with claims that they could purchase a Nintendo gaming console for 999 KRW, has been sanctioned by the Fair Trade Commission for exaggerated advertising. In reality, winning the offer was virtually impossible, and the conditions for winning were not properly disclosed.
The official domestic release price of the Switch 2 is 648,000 KRW, and the bundle including the launch title "Mario Kart World" is 688,000 KRW. Nintendo Switch 2. Reuters Yonhap News.
On June 11, the Fair Trade Commission announced that it had issued a corrective order to Elementry Innovation Private Limited (Temu) for violations of the Act on Fair Labeling and Advertising and the Act on the Consumer Protection in Electronic Commerce. The commission also imposed a penalty surcharge of 357 million KRW and a fine of 1 million KRW.
According to the Fair Trade Commission's investigation, Temu conducted a "Nintendo Switch 999 KRW Special Offer" event from August last year to March this year, using phrases such as "Congratulations! You hit the jackpot" to exaggerate consumers' chances of winning. However, in reality, the event only applied to the first person to participate, and the conditions for winning were not clearly disclosed, making it virtually impossible to win.
Additionally, Temu displayed a countdown timer on its webpage, making it appear as though consumers had to install the app within a limited time to receive a coupon. In fact, the same coupon could be obtained upon reconnecting, even without installing the app. The Fair Trade Commission judged this behavior as "false and deceptive advertising."
Furthermore, Temu made it difficult for consumers to understand the conditions for participating in free giveaway events, unilaterally refused refunds under the pretext of "same-day shipping," and demanded excessive documentation during return and refund procedures, thereby infringing on consumer rights.
The Fair Trade Commission concluded that such advertising by Temu constituted unfair advertising practices that could influence consumers' purchasing decisions and their choice of e-commerce platforms. As a result, the commission decided to issue a corrective order (public announcement order) and impose a penalty surcharge of 357 million KRW.
A representative from the Fair Trade Commission stated, "This measure detects and corrects unfair labeling and advertising practices, as well as violations of the Electronic Commerce Act, by overseas e-commerce platforms. We believe this action will remind foreign companies entering the domestic market of their legal obligations and help prevent consumer harm." The commission also emphasized, "We will continue to closely monitor and respond strictly to unfair practices in the e-commerce market."
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