[Alpha Biz= Reporter Kim Sangjin] The Korea Fair Trade Commission (KFTC) has begun formal sanction proceedings against the Chinese e-commerce company AliExpress for violating the Electronic Commerce Act.

Under suspicion of violating the Electronic Commerce Act, which mandates online sellers to register with local authorities, AliExpress submitted a registration last September under the name "AliExpress Korea Limited" in Seoul. However, the KFTC has determined that this entity does not operate actual online shopping malls but serves in a representative capacity, with primary e-commerce operations managed by overseas headquarters or other entities.

The KFTC has sent a review report, akin to a prosecutor's indictment, containing sanction recommendations to AliExpress regarding their alleged failure to fulfill reporting obligations as an online seller in Korea.

Additionally, the KFTC is investigating AliExpress for suspected false advertising, where they allegedly displayed original prices that were never actually sold at, misleading consumers into believing they were receiving discounts.
 

 

 

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