[News Today] ALI, TEMU LIABLE FOR DAMAGE

[LEAD]
Consumer complaints are on the rise with increased use of Chinese e-commerce platforms like Ali and Temu. These platforms have faced criticism from the Fair Trade Commission for their unfair terms and avoidance of dispute accountability. The two companies agreed to make necessary corrections.

[REPORT]
A man leaves his studio apartment. He came back in less than five minutes, but the flames were already shooting out of the room.

The fire was blamed on a fan that the man had ordered from AliExpress about a month and a half ago.

Kong ○○/ Victim
The fan's cord was overloaded, the flame jumped to the clothesline. If I had fallen asleep,...

He spent three million won, roughly 2,100 U.S. dollars, in wallpapering and restoration.

But the seller refused to compensate for the damage, claiming that it's inculpable, and AliExpress, the transaction broker, gave a refund just for the product.

Kong ○○/ Victim
I asked Ali to take a proactive measure, request indemnity from the seller later. Ali said it would consider my request, but just refunded the money.

These are the terms and conditions of Ali and Temu. It is stated that the e-commerce platform "is not responsible for the damage incurred between a buyer and a seller" and "is not obligated to get involved in disputes."

The Korean Fair Trade Commission concluded that the terms and conditions of these Chinese e-commerce platforms with an estimated ten million users have been unfairly limiting consumer rights.

Shin Yong-ho/ Fair Trade Commission
The conditions are invalid since its responsibility is excluded, the scope of damage compensation is restricted. Platform must fulfill its duty as good manager.

The FTC pointed out 47 terms and conditions of 13 types as unfair, which include a clause about users' personal information that the platform collects without restriction and setting the courts in Hong Kong and Singapore as the jurisdictions for dispute settlement.

Ali and Temu both decided to voluntarily rectify the unfair terms and conditions.

The e-commerce sites will take responsibility depending on the scope of fault and intention and also follow Korean laws. They will also restrict the personal data collection clauses more clearly.