Aliexpress Deceives Korean Consumers with 7,500 Instances of Fake Discounts Using Fabricated Original Prices

Fake Original Prices Used for Over 7,500
"False Discount Rate" Advertisements Detected

Chinese shopping platform Aliexpress has been fined tens of billions of won for deceiving Korean consumers through false advertising practices, such as displaying fake discount rates.

On August 31, the Fair Trade Commission announced that it would impose corrective orders (future prohibition orders and public announcement orders) and a total fine of 2,093,000,000 won on Aliexpress for violations of the Act on Fair Labeling and Advertising and the Act on Consumer Protection in Electronic Commerce by Aliexpress affiliates.

Chinese shopping platform AliExpress has been fined tens of billions of won for deceiving Korean consumers by engaging in false advertising, such as displaying fake discount rates.

Aliexpress affiliates Oceansky and MICTW are accused of engaging in approximately 7,500 instances of false and exaggerated advertising from May 2023 to October of last year while selling products to Korean consumers on the Aliexpress platform. They listed prices that had never actually been used as the original price before discount, creating the impression of significant discounts. For example, they deceived consumers by claiming the original price of a tablet PC was 660,000 won, when the actual selling price was 270,000 won, thus falsely advertising a 58% discount. Using this method, Oceansky falsely advertised 2,422 products and MICTW falsely advertised 5,000 products.

An example of false and exaggerated advertising by AliExpress, claiming a 58% discount from the original price of 660,000 won, which was never actually sold. Fair Trade Commission

The Fair Trade Commission determined that these advertising practices "mislead consumers regarding the pre-discount price and discount rate of products" and "distort rational purchasing decisions by causing consumers to perceive the actual discount rate or economic benefit as greater than it really is."

Violations of the Electronic Commerce Act, such as failure to display business information, also detected

The Fair Trade Commission also found violations of the Electronic Commerce Act by Aliexpress and imposed a total administrative fine of 2,000,000 won.

Aliexpress operator Alibaba Singapore failed to display business information such as company name, representative's name, address, and telephone number, as well as the terms and conditions of the cyber mall, on the main page. The domestic affiliate Alikorea, which operates Aliexpress's Korean specialty store "K-Venue," was found to have neglected its obligation to verify business information related to third-party sellers. The Fair Trade Commission imposed fines of 1,000,000 won each on Alibaba Singapore and Alikorea.

The Fair Trade Commission stated, "This action strictly sanctions practices that hinder rational choices by domestic consumers," adding, "We will continue to enforce the law according to the same standards for both domestic and foreign businesses to create a market environment where consumers can trade with confidence."

Aliexpress responded, "We have immediately corrected all issues identified during the Fair Trade Commission's investigation, and these corrective actions have been acknowledged by the Commission." The company added, "We will continue to improve our operating system to comply with regulations and expectations in the Korean market."