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AliExpress showed Korean shoppers phantom 'original' prices — ₩2.1B fine

Two AliExpress affiliates faked 'original' prices on ~7,500 products to fake discounts. Korea's KFTC fined them ₩2.1B and ordered a public announcement.

AliExpress · 2025-08-31

What happened

On 31 August 2025 the Korea Fair Trade Commission fined two AliExpress affiliates for misleading Korean consumers with false discounts. Ocean Sky and MICTW were ordered to pay a combined ₩2.1 billion and to make a public announcement admitting the deception.

Between May 2023 and October 2024 the two affiliates listed inflated 'reference' prices on roughly 7,500 products and claimed discounts that were never actually offered. Ocean Sky was fined for 2,422 products and MICTW for about 5,000. The KFTC gave an example of a product advertised at a 58% discount off a regular price of 660,000 won — a price at which the item had never been sold.

The KFTC found the practice distorted consumers' rational purchasing decisions by making them overestimate the real value of a product or the size of a discount. It also imposed corrective orders on the two affiliates, including a four-day public announcement order.

Separately, the KFTC fined Alibaba's operating companies — Alibaba Singapore and AliExpress Korea — ₩2 million each for violating the obligation to disclose their business identity under Korea's E-commerce Act, including failing to register as mail-order operators and to tell consumers they were not a party to the transactions.

Why it happened

  • A cross-border marketplace that shows a fake higher 'was' price has no cost to the lie — the discount looks generous and the phantom price is never checked against anything real.
  • The deception worked at scale across thousands of products because the reference price was invented at listing time with no system to verify it against actual sales.
  • The advertising fine was small next to the volume of transactions, but the four-day public announcement order was the part that cost the platform trust.
What it cost₩2.1B fines plus corrective and public-announcement orderscostly

The lesson

A discount is only real if the 'original' price is. Inventing reference prices to look generous turns a marketing tool into a false-advertising violation once a regulator checks against real sales.

Aftermath

The KFTC's corrective orders required Ocean Sky and MICTW to stop the practice and to make a public announcement of the violation. The case was part of a wider KFTC push on cross-border e-commerce platforms, which had also been scrutinised over how they presented prices and discounts to Korean consumers.

Sources

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