The Korea Fair Trade Commission said on the 9th that it issued a corrective order to Coupang and imposed a penalty surcharge of 5 billion won for advertising a one-time coupon discount as if it were the paid member price to induce sign-ups for its paid membership (Wow Members).
From Aug. 26, 2020, to May 15, 2022, Coupang used ad phrases such as "discount at Wow member price," "get a discount with Rocket Wow," and "member-only special price," advertising as if there were prices at which customers could routinely receive discounts compared with regular sale prices by joining Wow Members.
However, the Wow member price was the price after applying a discount coupon that could be used only once upon joining Wow Membership, and consumers could not repeatedly purchase products at the same "Wow member price."
In this process, the Korea Fair Trade Commission (FTC) determined that Coupang did not clearly inform consumers on the main advertising page that the Wow member price reflected a one-time coupon and what the scope of the Wow member price was, in a way that was easy to recognize.
The Korea Fair Trade Commission (FTC) viewed this conduct as falling under "deceptive labeling or advertising" in Article 3(1)2 of the Act on Fair Labeling and Advertising. The Act on Fair Labeling and Advertising prohibits businesses from posting advertisements that could mislead consumers.