‘Fake Goods Paradise’ AliExpress... Fair Trade Commission Chairman "Considering Temporary Suspension Order"

Ali "Equipped with Fake Product Verification System, Fake Products 0.01%" Claims
Rep. Kim Min-guk "Domestic Consumer Damage Increasing
Enough Grounds for Illegality, Temporary Suspension Order Needed"

On the 16th, the Chairman of the Fair Trade Commission announced that he would examine the legality of the growing consumer damages caused by counterfeit sales on AliExpress and consider issuing a temporary suspension order.

Fair Trade Commission Chairman Han Ki-jung is responding to lawmakers' questions at the National Assembly's Political Affairs Committee audit on the 16th. Photo by Hyunmin Kim kimhyun81@

At the National Assembly's Public Administration and Security Committee hearing on the Fair Trade Commission, Min-guk Kim, a member of the People Power Party, urged the Fair Trade Commission to take strong measures against AliExpress, stating, "AliExpress's mass distribution of counterfeit products not only harms domestic consumers but also damages the manufacturing industry, constituting an act that restricts fair competition." Lei Zhang, the Korean representative of AliExpress Korea, appeared as a witness regarding the domestic consumer damages caused by the sale of counterfeit products.

On the same day, Representative Kim showed a picture of a National Assembly member badge sold on AliExpress, criticizing, "It is being sold as a Korean metal brooch for 15,000 won," and added, "Police badges are also openly sold, which is an unacceptable situation."

Representative Kim also explained that AliExpress's counterfeit sales violate the Fair Trade Act and the Electronic Commerce Act (Act on Consumer Protection in Electronic Commerce, etc.). He pointed out, "This falls under Article 45 of the Fair Trade Act concerning unfair trade practices and Article 21 of the Electronic Commerce Act (which allows for temporary suspension orders for acts that mislead consumers by false or exaggerated facts or deceptive methods)."

Han Ki-jung, Chairman of the Fair Trade Commission, responded, "We will verify the relevant facts to check for violations of the Fair Trade Act and the Electronic Commerce Act," and added, "We will also consider issuing a temporary suspension order."

Lei Zhang, who attended the hearing, emphasized that AliExpress has a clear system to eradicate counterfeit goods. He stated that three systems are in operation: seller screening, AI-based counterfeit identification, and punishment of sellers violating IP (intellectual property) rights. He claimed that objections related to counterfeit goods account for only 0.015% of total transactions in Korea.

However, Hye-ryeon Baek, a member of the Public Administration and Security Committee, said, "Based on today's cases alone, it seems that the system AliExpress claims to have is not functioning properly," and added, "The claim that the counterfeit rate is 0.01% is also hard to believe, so I hope the system will be reviewed again."

In response, Lei Zhang said, "We will immediately investigate after internal verification," and added, "We understand the difficulties faced by Korean consumers and will invest more human, financial, and technological resources."

This content was produced with the assistance of AI translation services.