On June 11, 2025, the Korea Fair Trade Commission (the "KFTC") announced that it had imposed corrective measures and a fine of KRW 358 million (approximately USD 270,200) against Elementary Innovation Pte. Ltd., which operates Temu, for engaging in misleading advertising practices and failing to comply with mandatory disclosure and filing obligations.
From August 25, 2023, to March 20, 2024, Temu displayed a countdown timer falsely implying that customers had to install its mobile app within a limited time to receive discount coupons, although the coupons were available regardless of whether the app was installed within that period. From May 9 to July 20, 2024, Temu conducted a promotion claiming products such as Nintendo Switch consoles were available to the first purchaser for KRW 999 (approximately USD 0.75), falsely implying multiple customers could benefit or that purchases were guaranteed, despite the offer being limited to a single unit. In addition, from September 21, 2023, to May 2, 2025, Temu promoted "credits" (a form of virtual currency usable on the Temu mall) and other rewards as free, without clearly disclosing eligibility criteria to consumers. The KFTC concluded that these practices constitute false, exaggerated, or deceptive labeling or advertising under Article 3(1)(i)-(ii) of the Act on Fair Labeling and Advertising, likely to influence consumers' purchasing decisions and their choice of e‑commerce platform.
The KFTC also determined that Temu had violated multiple obligations under the Act on the Consumer Protection in Electronic Commerce (the "E‑Commerce Act"). Specifically, Temu failed to (i) display its business information and terms of use, in violation of Article 10(1), (ii) comply with mail order business reporting requirements, in violation of Article 12(1), and (iii) provide notice of its status as an intermediary, in violation of Article 20(1).
The KFTC stated that it will continue to monitor unfair advertising practices and violations of the E-Commerce Act by foreign platforms newly entering the Korean market, and will take action against those who undermine consumer trust or impede informed consumer choice.
Source: Korean language press release section of the KFTC's website
Originally published by Practical Law
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