Coupang Fined 500 Million Won for 'Wow Member Price' Deception

South Korea's Fair Trade Commission (KFTC) has imposed a 500 million won fine on e-commerce giant Coupang for misleading consumers about its pricing. The company is accused of advertising discounts as a permanent benefit for its paid "Wow Membership" when, in reality, these prices often included one-time coupons.

The KFTC announced its decision on June 9, stating that Coupang violated advertising laws. The fine represents the maximum statutory amount for a fixed penalty. The commission found that Coupang began advertising prices that included one-time coupons as the "Wow Member Price" starting in August 2020. Previously, in March 2020, when the membership discount was introduced, the "Wow Member Price" genuinely reflected a permanent benefit for members, with one-time coupons clearly indicated separately.

However, Coupang allegedly obscured the fact that these advertised prices were conditional on using limited-time coupons. By using phrases such as "Wow Member Price" or "Get discounts with Rocket Wow," the company created the impression that members would always receive these discounted rates. This practice led consumers to believe they were getting a consistent, ongoing benefit, rather than a temporary offer.