AliExpress, Temu update terms to comply with Korean law

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AliExpress, Temu update terms to comply with Korean law

Published: 20 Nov. 2024, 17:44

SHIN HA-NEE
[email protected]

The logo of Temu and AliExpress [JOONGANG ILBO]

Chinese e-commerce companies AliExpress and Temu updated their "unfair" user terms and conditions following directives from Korea's Fair Trade Commission (FTC), the antitrust watchdog said Wednesday.

The FTC identified 47 clauses in the platforms' terms and conditions that were deemed to unfairly limit consumer rights and excessively exempt the platforms from liability, in violation of local e-commerce laws and other relevant regulations.

The antitrust regulator ordered adjustments to several existing clauses that limit the platforms' liability in consumers’ rights violations and broadly limit compensation for damages so that the two platforms bear responsibility commensurate with their negligence and comply with the Korean civil law on consumer compensation.

Additionally, as some of the terms permit extensive collection of users' personal data without specifying usage duration and even allow the sharing of data with third parties without user consent, the FTC ordered AliExpress and Temu to specify the kind of data that can be collected and the deletion of any clauses that unfairly limit consumers' data protection rights.

Furthermore, the companies' existing terms require consumer disputes to be resolved exclusively in overseas courts, with AliExpress specifying Hong Kong and Temu specifying Singapore as their choices of destination. The FTC ordered such terms be revised to state that local laws apply to disputes with Korean consumers.

The agency said that the revision of the terms ahead of the Black Friday sales event slated for next week would be able to help protect the rights of Korea's estimated 13 million overseas shoppers.

The Chinese online retailers, which gained significant popularity in Korea with low prices and a broad range of products, have come under scrutiny for their business practices and safety concerns.

Direct overseas purchases in Korea reached 6.8 trillion won ($4.9 billion) last year, up from 5.3 trillion won in 2022, largely driven by increased online purchases from China through platforms like AliExpress and Temu.

BY SHIN HA-NEE, YONHAP [[email protected]]