📉 Safety Failures on Major Platforms
South Korea’s consumer safety agency revealed that nearly a third of products tested on AliExpress, Temu, and Qoo10 failed to meet safety standards. Out of 88 products tested, 27 were found unsafe. Products tested included motorcycle helmets, children's toys, cosmetics, and air fresheners. The agency began these tests in May, aiming to ensure consumer safety amid increasing online purchases.
🧸 Dangerous Toys and Cosmetics
The tests showed alarming results for children's toys and cosmetics. Out of 28 toys, 11 contained harmful materials like cadmium and lead. Nine out of 40 cosmetics had banned substances, including heavy metals and tar pigments. The agency highlighted that 9 out of 10 motorcycle helmets tested did not meet safety standards, with 8 failing to absorb shock entirely. Fortunately, all 10 air fresheners passed the tests.
🔒 Response and Regulatory Actions
Following these findings, AliExpress, Temu, and Qoo10 have blocked the sale of the problematic products as recommended by the agency. This move is part of South Korea's broader efforts to tighten e-commerce regulations. In May, AliExpress and Temu signed an agreement to promote product safety, highlighting the government's commitment to protecting consumers in its $151.8 billion e-commerce market.
💰 Market Dynamics and Future Steps
AliExpress had 8.3M monthly active users in South Korea in May, with Temu having 7.97M, surpassing local platforms like 11st. However, both saw slight drops in users from March to May. The market's rapid growth has led to stricter regulations. South Korea’s Fair Trade Commission recently fined Coupang $101.63M for unfair practices, demonstrating the government's stance on ensuring fair play and safety in the e-commerce sector. Coupang plans to contest the fine, emphasizing its commitment to fast delivery and free returns.
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