Celebrity-run shopping malls fined for unfair trading practices

The nation’s antitrust watchdog said Monday that it had imposed a combined 38 million won ($33,260) in fines on six online shopping malls run by TV celebrities for unfair business practices.

The companies included Aura-J, run by actress Jin Jae-young, I Am Yuri by singers Yuri and Baek Ji-young, and Amai by singer Hwang Hye-young, all of which posted sales last year ranging from 2 billion won to 20 billion won.

The Fair Trade Commission investigated the nation’s top 10 online shopping malls based on the number of clicks to their websites and fined the six for unfair promotional events using the popularity of their celebrity owners.

I Am Yuri was found to have ordered their employees to write positive reviews on their sales items, while Eva Junie promoted gift events even after their prepared gifts were sold out.

All the shopping malls were also found to have maintained a no-refund policy for selected products such as silk, white goods and discounted items, even though related laws oblige them to give refunds.

Together with the fines, the FTC ordered the companies to notify the details of the punitive measures they have received on the front page of their websites for three to seven days depending on individual violations.

“Amid their growing popularity among youngsters, the new measures will raise consumer awareness toward online shopping malls overall,” said Sung Kyung-je, the team leader of electronic trade bureau at FTC.

“We will continue monitoring another 130 celebrity shopping malls to see if they carry out any illegal activities.”

Currently, there are 136 online shopping malls, mostly selling fashion items, that are owned or operated by singers and actors.

By Lee Ji-yoon (jylee@heraldcorp.com)