ED Dubious product reviews

Regulator should probe and reveal Coupang's alleged self-praise

Civic groups have raised an issue with Coupang, alleging that the e-commerce giant mobilized employees to write false reviews for its private-label products. If proven true, this is blatant consumer fraud, deserving strict punishment by the Korea Fair Trade Commission (KFTC).

In a press conference on Tuesday, six civic groups, including People's Solidarity for Participatory Democracy, said Coupang had been making its employees write reviews since last July on its own brand products systematically without paying any compensation.

According to the civic groups, Coupang pulled up the exposure rankings of its private label goods by manipulating product reviews. Since January, the company has failed to provide disclaimers stating that reviews were written by employees of Coupang or its subsidiaries after using the provided product. This is a violation of the Fair Trade Act and the Product Labeling Act.

It is established through studies that when competing products are similar, consumers tend to prefer brands with good consumer reviews. Civic groups believe Coupang exploited such consumer psychology by falsifying reviews. Consumers who bought such products must have felt betrayed by the e-commerce platform. Coupang refuted the allegation, saying the civic groups repeated false claims and the company is carrying out the consumer reviews of its products fairly and transparently. The antitrust watchdog should find out the truth through an immediate and thorough investigation.

The recent controversy reaffirms the need for the government to reinforce a law preventing platform monopolies and unfair business practices. The proposed legislation is essential for regulating e-commerce giants' prioritizing of their own brands while discriminating against other brands by exploiting their dominant status. Last year, the European Parliament approved the Digital Markets Act to regulate online platforms. The U.S. Congress also passed five laws recently to control platform giants. A fair trade bill for online platforms is also pending at the National Assembly here in Korea. The Assembly must pass it quickly to ensure fair trade and protect consumers better.