South Korea has slapped AliExpress, Alibaba’s global shopping platform, with a $1.51 million fine after regulators uncovered a widespread scheme of fake discounts that misled thousands of Korean shoppers.
According to the Korea Fair Trade Commission (KFTC), AliExpress subsidiaries OceanSky and MICTW manipulated prices on nearly 7,500 products between May 2023 and October 2024. The playbook was simple: invent an inflated “original price,” then show a steep discount to make shoppers believe they were getting a bargain.
In one case, a tablet listed at $193 appeared to be marked down 58% from a supposed original price of $474. But regulators found that $474 had never been used in an actual sale—it was just a number designed to trick buyers into thinking they were saving big. OceanSky alone used this tactic on 2,422 products, while MICTW applied it to 5,000 more.
The watchdog called the strategy a direct distortion of consumer behavior, saying it created “false perceptions of economic benefits.” To make matters worse, AliExpress also failed to provide legally required information on its Korean website, such as company details, customer service contacts, and merchant verification.
The $1.5 million fine, while small compared to Alibaba’s global scale, highlights growing scrutiny of foreign e-commerce platforms operating in South Korea. Regulators made clear that domestic and foreign companies will face the same standards when it comes to misleading advertising.
AliExpress said it has already fixed the issues flagged during the investigation, stressing that compliance with local rules is a “top priority.” But the case underscores a broader truth: even the world’s largest online shopping platforms aren’t immune to regulatory pushback when consumer trust is on the line.
South Korea Hits AliExpress With $1.5 Million Fine Over Fake Discounts
South Korea has slapped AliExpress, Alibaba’s global shopping platform, with a $1.51 million fine after regulators uncovered a widespread scheme of fake discounts that misled thousands of Korean shoppers.
According to the Korea Fair Trade Commission (KFTC), AliExpress subsidiaries OceanSky and MICTW manipulated prices on nearly 7,500 products between May 2023 and October 2024. The playbook was simple: invent an inflated “original price,” then show a steep discount to make shoppers believe they were getting a bargain.
In one case, a tablet listed at $193 appeared to be marked down 58% from a supposed original price of $474. But regulators found that $474 had never been used in an actual sale—it was just a number designed to trick buyers into thinking they were saving big. OceanSky alone used this tactic on 2,422 products, while MICTW applied it to 5,000 more.
The watchdog called the strategy a direct distortion of consumer behavior, saying it created “false perceptions of economic benefits.” To make matters worse, AliExpress also failed to provide legally required information on its Korean website, such as company details, customer service contacts, and merchant verification.
The $1.5 million fine, while small compared to Alibaba’s global scale, highlights growing scrutiny of foreign e-commerce platforms operating in South Korea. Regulators made clear that domestic and foreign companies will face the same standards when it comes to misleading advertising.
AliExpress said it has already fixed the issues flagged during the investigation, stressing that compliance with local rules is a “top priority.” But the case underscores a broader truth: even the world’s largest online shopping platforms aren’t immune to regulatory pushback when consumer trust is on the line.
