In the fashion industry, repeated violations of product information, such as misreporting fiber blend ratios and "label swapping" (relabeling), are fueling consumer distrust. Against this backdrop, Musinsa recently began investigating related allegations and announced sanction plans, widening an industry discussion over the platform's management responsibility.
According to the industry on the 13th, Musinsa said through its newsroom on the 11th, "To protect customers, if label swapping of brand products is confirmed, we will respond more decisively than before." Label swapping is an illegal practice in which a company replaces another company's label and sells the product as if it were self-produced. It is usually carried out by attaching a new label to products cheaply manufactured overseas and then selling them on online malls at prices two to three times higher.
Musinsa recently confirmed through customer inquiries allegations that some onboarded brands, contrary to their original plan stating "self-produced," sold external products by only replacing the labels, and it has launched an investigation. The fashion industry has a structural limitation in that department stores, big-box retailers, and online platforms all find it difficult to pre-inspect products from onboarded brands. However, it has remained a recurring controversy that even after problems arise, responses often stop at minimal steps such as halting sales without providing consumer guidance or preparing compensation plans.
In fact, a shoe brand recently accused of label swapping was onboarded not only on Musinsa but also on multiple platforms such as W Concept and HAGO. After Musinsa halted sales, W Concept also stopped selling the products, but some platforms are reportedly still continuing sales.
A fashion industry official said, "In the past, in the Dongdaemun-based fashion market, so-called label swapping—selling by only changing another company's label—continued as if it were a long-standing practice," and added, "From a platform's perspective, it is structurally difficult to respond proactively due to concerns about a decrease in transaction volume or brand departures."
Musinsa plans to introduce an artificial intelligence (AI)-based online inspection system to prevent recurrence going forward. It will analyze similarities across more than 1.2 million onboarded products and compare and analyze them not only with products on its own platform but also with those registered on other domestic and overseas e-commerce sites.
In addition, if issues are detected, it will impose sanctions at a "one strike out" level by removing all products of the brand. If necessary, it plans to take legal action, including filing for damages, considering the reputational harm caused to Musinsa and all onboarded brands.
The government is also discussing strengthening platform accountability. The Korea Fair Trade Commission this year commissioned a research project on "improving the consumer protection system related to mail-order brokerage under the E-Commerce Act," beginning its review of policy changes. The Korea Fair Trade Commission (FTC) says that since platforms are deeply involved in the transaction process, including payment and delivery, there is a need to redefine their roles and responsibilities from a consumer protection perspective.
A Musinsa official said, "We will continue efforts to restore order in the fashion ecosystem and regain customer trust," adding, "We sincerely apologize for causing concern to customers and partner companies, and we will repay you with a more transparent and safe shopping environment going forward."