Fair trade watchdog slaps 500 mln-won fine on Coupang for misleading ads (original) (raw)

By Kang Yoon-seung

SEJONG, June 9 (Yonhap) -- South Korea's fair trade watchdog on Tuesday slapped a 500 million-won (US$327,000) fine on the South Korean arm of Coupang for posting misleading advertisements about discounts offered to paid membership subscribers.

The Fair Trade Commission (FTC) said the action taken against Coupang Corp., which is the legal maximum that can be applied, comes as the company posted misleading advertisements on its website from August 2020 to May 2022 regarding the benefits provided to paid membership subscribers.

According to the watchdog, the company informed users that members of the Coupang Wow program could purchase certain products at lower prices than regular customers without notifying them that such discounts were offered through a one-time coupon.

"Coupang released advertisements as if Coupang Wow members had a separate pricing system offering permanent discounts compared with regular prices," the FTC said in a release.

"But the suggested discounted price was only available once through a coupon provided upon subscribing to the membership," it added, noting the company failed to clearly inform users of the conditions attached to the discounts.

The watchdog said Coupang had also displayed exaggerated information about discounts provided under the paid membership during the cancellation process with phrases such as "You will no longer be able to purchase products at Wow membership prices."

The FTC said Coupang's actions could be considered "deceptive advertising" under the Act on Fair Labeling and Advertising, disrupting customers' reasonable purchasing decisions.

The watchdog noted the fine came as Coupang had experienced a significant rise in its membership based on such misleading advertisements and that the violation lasted for nearly two years.

The FTC, meanwhile, said discussions are currently under way at the National Assembly on raising the ceiling on fines for misleading advertisements to 5 billion won from the current 500 million won.

The move came as damage to consumers from misleading advertisements has increased amid the spread of artificial intelligence technology, while fines have remained low, raising questions about their effectiveness.

This image, provided by the Fair Trade Commission on June 9, 2026, shows a screenshot of Coupang, a major shopping platform, displaying a misleading advertisement about benefits for paid members. (PHOTO NOT FOR SALE) (Yonhap)

colin@yna.co.kr
(END)