알리 ‘90% 할인’?…공정위 “허위광고 혐의” / KBS 2024.10.01.

Summary

The South Korean Fair Trade Commission (FTC) has launched an investigation into AliExpress for allegedly exaggerating discounts, including claims of 90% off, which the FTC views as misleading. The company is accused of inflating discounts by advertising prices that were never actually offered. AliExpress has acknowledged receiving notice of the investigation and stated they are monitoring the platform and taking necessary actions. The FTC is expected to decide on potential penalties by the end of the year, while another e-commerce platform, Temu, is also under scrutiny for similar false advertising claims.

Takeaways

• 📉 Aliexpress often advertises discounts of up to 90%, making some items appear almost free.
• 💼 The Korea Fair Trade Commission (KFTC) has launched a thorough investigation into possible false or exaggerated advertising by Aliexpress.
• 🕵️‍♂️ Recently, the KFTC began sanctioning Aliexpress based on their findings.
• ⌚ Aliexpress advertised high discounts, such as a 690,000 won watch for 69,000 won, claiming an 80-90% discount.
• 📈 Aliexpress has grown rapidly, with over 9 million users in South Korea, making it the second largest e-commerce platform after Coupang.
• ❗ The KFTC suspects that Aliexpress inflated discount percentages by using prices that were never actually offered.
• 📝 According to regulations, discounts should be based on prices that were offered for at least 20 days prior, which Aliexpress failed to prove.
• 💡 The KFTC is concerned that misleading discount rates can influence consumer purchasing decisions.
• 📄 The KFTC has sent a statement of objection (similar to an indictment) to Aliexpress and its affiliates regarding the matter.
• 🚨 The final decision on Aliexpress' sanctions is expected by the end of this year, and the KFTC is also investigating Temu for similar allegations of false advertising.

Q & A

What is the primary issue the Fair Trade Commission (FTC) is investigating in relation to AliExpress?

The FTC is investigating AliExpress for allegedly making false and exaggerated discount advertisements, where it displayed high discount rates based on prices that were never used in actual sales.

What kind of discounts does AliExpress advertise according to the report?

AliExpress advertises discounts as high as 80% to over 90%, making items like a watch originally priced at 690,000 KRW available for 69,000 KRW.

Why does the FTC believe the discounts advertised by AliExpress might be misleading?

The FTC believes AliExpress inflated the discounts by setting the original prices at levels that were never used in actual sales, violating the rule that prices used for discount ads must have been in effect for at least 20 days.

What is the impact of such false advertising on consumers according to the FTC?

The FTC notes that exaggerated discounts can mislead consumers into making purchasing decisions based on incorrect information, thinking they are getting a better deal than they actually are.

How has AliExpress responded to the FTC's investigation?

AliExpress acknowledged receiving notice of the FTC's investigation and stated that they will monitor their platform using technology and take necessary actions to address the issue.

When is the final decision on the potential penalties for AliExpress expected?

The decision on whether AliExpress will face penalties, and the severity of those penalties, is expected to be made by the end of this year.

How has AliExpress gained popularity in South Korea recently?

AliExpress has gained popularity in South Korea by offering low prices and high discount rates, which have helped it attract over 9 million users and secure second place in the e-commerce market, behind Coupang.

What are the legal requirements for advertising discounts according to South Korean regulations?

South Korean regulations require that any advertised discount must be based on a price that was actually used for sales for at least 20 days prior to the discount.

What other platform is under investigation by the FTC for similar reasons?

The FTC is also investigating the e-commerce platform Temu for similar false advertising allegations.

What is the role of KBS in the investigation mentioned in the report?

KBS conducted investigative reporting that confirmed the FTC had recently completed its investigation into AliExpress and had begun the process of penalizing the platform.