The encyclopedia · Advertising & PR · Marketing decision · 2024
Coupang: 2,297 staff wrote 72,614 fake reviews — record ₩140B fine
Korea's watchdog fined Coupang a record ₩140 billion ($102M) after 2,297 employees wrote 72,614 fake reviews and its algorithm buried competitors.
Coupang · 2024-06
What happened
In June 2024 South Korea's antitrust regulator, the Fair Trade Commission, fined Coupang 140 billion won ($102 million) — the largest penalty it had ever imposed on a distribution company. The ruling covered two coordinated deceptions running since 2019: Coupang employees wrote 72,614 positive reviews of its own products, and its search algorithm was tweaked to push Coupang's own items to the top of results.
The scale is what made it a national scandal. 2,297 employees — nearly a tenth of the workforce — wrote reviews for at least 7,342 of the company's own products, averaging 4.8 out of 5 stars. The search manipulation, run from February 2019 to July 2022, placed 64,250 Coupang products at the top of rankings while demoting more than 400 million listings from 210,000 third-party sellers; sales of the favoured items rose more than 76%.
Coupang said it regretted the fine and insisted its recommendations were based on quality, price, sales and customer reviews. The regulator's finding showed something simpler: a marketplace had weaponized its own platform against its own sellers, and the fake reviews were written by the company's own staff.
Why it happened
- Coupang wanted its private-brand products to win at any cost, so it used its own employees to write the reviews and its own algorithm to rank them.
- A 4.8-star average from 72,614 reviews looked like genuine demand — the deception worked for years because reviews were the trust signal shoppers checked.
- The search tweaks ran from February 2019 to July 2022, long enough to reshape what Korean shoppers saw first on the country's dominant marketplace.
- Coupang's own numbers betrayed it: 2,297 staff reviewers for 7,342 private-label products, and sales of favoured items up 76%.
The lesson
When the marketplace is also a merchant, its own reviews are its own testimony. 2,297 employees and 72,614 fake reviews produced Korea's record ₩140 billion fine.
Aftermath
The KFTC ordered Coupang to correct its practices and publicize the decision. Coupang said it would strengthen its internal review system, while denying its recommendations were manipulated by anything other than quality and price.
Sources
- KFTC Imposes Severe Sanctions on Coupang for Consumer Deception — KFTC press release
- Korea's e-commerce giant Coupang fined $102 million for alleged manipulation of search algorithm and product reviews — Korea Times
- Coupang faces record $102.8 mln fine over review, search manipulation — Yonhap
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