Fair Trade Commission in Sejong City. [Photo by Yoo Dae-gil]
South Korea's Fair Trade Commission (FTC) has urged major online shopping platforms to clearly differentiate between regular prices, sale prices, and maximum discounts that apply under specific conditions to eliminate so-called "false discounts."
On May 19, the FTC announced its findings after investigating 1,335 products from four major online retailers—Coupang, Naver, Gmarket, and 11st—during the recent Lunar New Year holiday. The investigation revealed instances where retailers inflated prices to exaggerate discount rates or continued to sell products at the same price after limited-time promotions ended.
Analysis of 800 gift sets offered during the Lunar New Year sales showed that 12.8% (102 items) had their prices raised during the discount period, misleading consumers about the actual savings. This practice constitutes unfair representation and advertising.
Additionally, an examination of 535 items that were part of limited-time discounts in January found that 20.2% (108 items) either maintained the same price or decreased in price after the promotional period ended. The FTC considers these actions a violation of its "Online Dark Pattern Self-Regulation Guidelines."
While the retailers set their own prices, the FTC emphasized that platforms also have a responsibility to prevent legal violations.
To combat the inflation of discount rates through arbitrary price adjustments, the FTC recommended that retailers provide detailed explanations on product pages. It also suggested including a warning that false or exaggerated representations could lead to legal liability, along with documentation supporting the listed prices.
Furthermore, the FTC advised that discount rates should be based on a general sale price applicable to all consumers, while conditions for conditional discounts should be clearly stated nearby. This aims to clarify the minimum and maximum discount rates available to consumers.
An FTC official stated, "As major platforms take the lead in improving their systems, retailers must remain vigilant and accurately represent regular prices and discount rates based on objective evidence. Consumers are encouraged to use price comparison sites to check average selling prices and price trends before making purchases."
On May 19, the FTC announced its findings after investigating 1,335 products from four major online retailers—Coupang, Naver, Gmarket, and 11st—during the recent Lunar New Year holiday. The investigation revealed instances where retailers inflated prices to exaggerate discount rates or continued to sell products at the same price after limited-time promotions ended.
Analysis of 800 gift sets offered during the Lunar New Year sales showed that 12.8% (102 items) had their prices raised during the discount period, misleading consumers about the actual savings. This practice constitutes unfair representation and advertising.
Additionally, an examination of 535 items that were part of limited-time discounts in January found that 20.2% (108 items) either maintained the same price or decreased in price after the promotional period ended. The FTC considers these actions a violation of its "Online Dark Pattern Self-Regulation Guidelines."
While the retailers set their own prices, the FTC emphasized that platforms also have a responsibility to prevent legal violations.
To combat the inflation of discount rates through arbitrary price adjustments, the FTC recommended that retailers provide detailed explanations on product pages. It also suggested including a warning that false or exaggerated representations could lead to legal liability, along with documentation supporting the listed prices.
Furthermore, the FTC advised that discount rates should be based on a general sale price applicable to all consumers, while conditions for conditional discounts should be clearly stated nearby. This aims to clarify the minimum and maximum discount rates available to consumers.
An FTC official stated, "As major platforms take the lead in improving their systems, retailers must remain vigilant and accurately represent regular prices and discount rates based on objective evidence. Consumers are encouraged to use price comparison sites to check average selling prices and price trends before making purchases."
* This article has been translated by AI.
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