Korea fines Chinese e-commerce platform Temu over deceptive promotions

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Korea fines Chinese e-commerce platform Temu over deceptive promotions

A promotion by Chinese e-commerce platform Temu [FAIR TRADE COMMISSION]

A promotion by Chinese e-commerce platform Temu [FAIR TRADE COMMISSION]

 
Korea's antitrust watchdog said Wednesday it has fined Temu for misleading Korean consumers through deceptive promotional campaigns, marking the first regulatory sanction imposed on the Chinese e-commerce platform by the agency.
 
The Fair Trade Commission (FTC) said it has imposed a fine of 357 million won ($260,000) on Temu for violating the law governing fair advertising, along with an order for corrective measures.
 
The watchdog said the platform advertised that users could easily receive cash-equivalent reward points by simply tapping a roulette-style game. However, in reality, users were required to fulfill complex conditions, such as inviting multiple contacts, in order to receive the rewards.
 
"Consumers typically decide whether to participate in such promotions based on initial advertising messages," an FTC official said. "But in Temu's case, they could only discover the actual requirements after investing a significant amount of time and effort."
 
Separately, the FTC imposed a fine of 1 million won on Temu for violating the commerce law that requires platform operators to display their business identity information and terms of service clearly on the first page of the website.

YONHAP
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