AliExpress faces antitrust probe amid growing complaints
AliExpress Korea is facing a probe by Korea’s antitrust agency for its alleged breach of consumer protection laws, according to industry officials Wednesday.
An inspector from the Fair Trade Commission (FTC) visited the firm’s office in Seoul last week to obtain documents regarding its consumer disputes to look into the allegations against the e-commerce firm whose influence is rapidly growing here.
Consumer complaints on the firm’s platform are growing for its sales of fake or life-threatening products in recent months. The FTC is known to place its investigation focus on whether the platform abides by local fair competition acts and fulfills its right to protect customer rights here.
This comes in response to an increase in the number of consumer grievances against the company reported to the Korea Consumer Agency.
The number stood at 673 in 2023, an almost threefold increase from the previous year. In January this year alone, the figure stood at 212, more than 30 percent of last year’s total number of cases.
AliExpress pledged to abide by the local consumer protection laws and do its best to fulfill the right to protect customer rights.
“AliExpress is doing its utmost to maintain the collaboration with the FTC and will obey to all the laws and relevant rules in Korea for interested parties and consumers here,” the company said in a statement.
AliExpress was criticized for selling counterfeit products last year. In
October, lawmakers criticized the Chinese platform’s inadequate sales practices.
FTC Chairman Han Ki-jeong said that the watchdog will conduct an investigation if necessary and consider taking stern actions — such as the temporary suspension of the firm’s sales activities here, in a show of his hardline stance on consumer protection.
In December, AliExpress Korea CEO Ray Zhang also shared its plan to invest 10 billion won ($7.49 million) for the next three years for the protection of Korean firms’ intellectual property and customers during a press conference. The company said it is expanding its workforce for its customer service center.