Seoul
South Korea’s antitrust regulator, the Fair Trade Commission (FTC), said on Wednesday that it has ordered corrective actions on 47 unfair terms and conditions found in the operations of two major Chinese e-commerce platforms, AliExpress and Temu. These platforms, which have rapidly gained popularity in South Korea due to their low prices and wide range of products, have faced increasing scrutiny for their business practices, customer service handling, and advertising methods.
The FTC identified clauses in the platforms’ terms that unfairly restricted consumer rights and limited their liability in cases of disputes, violating South Korea’s e-commerce laws. The regulator has directed AliExpress and Temu to revise these terms, ensuring that they bear responsibility for damages caused by negligence and adhere to South Korean consumer protection laws.
Additionally, the FTC flagged terms that allowed extensive collection of personal data from users without clear usage durations or consent for sharing with third parties. In accordance with South Korea’s Personal Information Protection Act, the platforms must now specify which data is collected and revise their terms to ensure better protection of consumer privacy.
The platforms had also mandated that any consumer disputes be resolved in foreign courts, specifically in Hong Kong for AliExpress and Singapore for Temu. The FTC has required these terms to be amended, specifying that South Korean laws should govern any legal disputes with South Korean consumers.
