A Coupang delivery truck is parked in front of a Coupang logistics center in downtown Seoul, Dec. 30. Korea Times photo by Lim Ji-hoon
South Korea's fair trade watchdog on Tuesday slapped a 500 million-won ($327,000) fine on the South Korean arm of Coupang for posting misleading advertisements about discounts offered to paid membership subscribers.
The Fair Trade Commission (FTC) said the action taken against Coupang Corp., which is the legal maximum that can be applied, comes as the company posted misleading advertisements on its website from August 2020 to May 2022 regarding the benefits provided to paid membership subscribers.
"Coupang released advertisements as if Coupang Wow members had a separate pricing system offering permanent discounts compared with regular prices," the FTC said in a release.
The watchdog said Coupang had also displayed exaggerated information about discounts provided under the paid membership during the cancellation process with phrases such as "You will no longer be able to purchase products at Wow membership prices."
