Seoul: South Korea's antitrust regulator announced it has imposed a fine of nearly 2.1 billion won (US$1.5 million) on Chinese e-commerce giant AliExpress over misleading consumers with false discount rates for products sold on its online platform.

According to Yonhap News Agency, the Fair Trade Commission (FTC) stated that the fine was levied on AliExpress for violating the act on fair labeling and advertising. The FTC also issued an order for corrective measures to be implemented. The investigation revealed that two subsidiaries of AliExpress had posted misleading advertisements over 7,500 times for South Korean consumers on the platform between May 2023 and October 2024.

The subsidiaries were found to have listed products with prices at which they were never actually sold, subsequently indicating their selling prices alongside false discount rates. For example, a tablet PC sold for 270,000 won was falsely advertised with an original price of 660,000 won and a claimed discount of 58 percent.

The FTC noted that this conduct led to "consumer misperception" regarding the actual price and discount rate of the goods, potentially "distorting reasonable purchasing choice" by exaggerating the economic benefits of the purchase. Additionally, the watchdog ordered AliExpress to pay a 2 million-won fine for failing to publicize its operators' personal information and terms and conditions on its website.

In response, AliExpress issued a statement asserting that it has "fully implemented" all corrective measures in relation to the issues identified by the regulator. The company also emphasized its commitment to prioritizing "consumer experience and trust" as its fundamental focus.