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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] The Fair Trade Commission (FTC) is currently investigating multiple allegations against Coupang, including "search rank manipulation" of its private brand (PB) products, "consumer deception," and "obstructing mid-term cancellation of membership contracts." These investigations follow a recent stringent penalty imposed on Coupang on June 13.
On June 17, it was reported that the FTC had conducted on-site investigations at the headquarters of Coupang, Naver, and Market Kurly last month regarding the allegations of obstructing the mid-term cancellation of membership contracts on their online shopping platforms.
Among these companies, Coupang was found to have not refunded the remaining balance when its premium "Wow Membership" subscribers requested to cancel their memberships mid-term. Instead, the service continued until the end of the billing cycle, making mid-term cancellations virtually ineffective.
The FTC is investigating whether Coupang's membership management practices were deceptive and whether they hindered "withdrawal of subscription" or "contract termination" through misleading methods.
Additionally, Coupang is under investigation by the FTC for "consumer deception" related to its membership price increase. When Coupang raised the membership fee from 4,990 KRW to 7,890 KRW, it included a "fee change agreement" phrase on the payment page. By clicking the payment button, users were considered to have agreed to the price increase.
Furthermore, the FTC is examining other issues concerning Coupang, including, exaggerated advertising of membership benefits, passing promotional costs onto subcontractors and unfair treatment of suppliers.
In response to the majority of the FTC's decisions against it, Coupang has filed administrative lawsuits to contest the rulings.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
