FTC Conducts On-site Investigation into China’s AliExpress

The Korea Fair Trade Commission (KFTC) conducted an on-site investigation into AliExpress, the shopping platform of the Chinese Alibaba Group, which is suspected of violating consumer protection obligations.

According to industry sources on March 6, the KFTC recently sent investigators to the Seoul office of Ali Korea in the Jung district of Seoul, securing materials related to consumer dispute resolution. Ali Korea is a domestic corporation established by the Chinese e-commerce company AliExpress.

It is reported that the KFTC has initiated an on-site investigation to examine whether AliExpress has violated consumer protection obligations under the Electronic Commerce Act.

Under the Electronic Commerce Act, platforms like AliExpress, which act as intermediaries in telecommunications sales, are required to provide consumers with information about the identity of their sellers and must have the necessary personnel and facilities to address consumer complaints and resolve disputes.

According to the Consumers Union of Korea, the number of consumer complaints against AliExpress has recently shown a significant increase.

The number of consumer complaints, which stood at 93 cases in 2022, surged to around five times that figure in just one year, reaching 465 cases last year. In January of this year alone, 150 complaints were received.

By type, contract non-performance accounted for 226 cases, representing 49 percent of the total, while contract termination-related issues amounted to 143 cases, comprising 31 percent. Quality complaints made up 82 cases, accounting for 18 percent of the total.

During last year’s parliamentary audit, concerns were raised about AliExpress’s “counterfeit sales” issue. At the time, Han Ki-jeong, the chairman of the KFTC, stated, “We will consider investigating from the perspective of unfair practices and consider issuing temporary suspension orders if necessary.”