Shoppers Opt for Korean E-commerce Sites Over Less Expensive Chinese Counterparts
Title: Temu Fined a Million Bucks for Sneaky Data Transfer, Gearing Up to Storm Korea
Temu, that mega-popular e-commerce platform, got slapped with a hefty fine of almost $1 million (1.36 billion won or around $982,420) by South Korea's Personal Information Protection Commission (PIPC). They served this fine due to Temu's sneaky transfer of South Korean users' personal data to various locations, including China, Singapore, and Japan, without giving a heads-up or asking for approval[1][3][5].
Yo, what's up with Temu shipping user data worldwide?
Multiple issues led to this finance fiasco, like:
- Temu clandestinely sent 13 types of personal information, including device identifiers, across foreign borders, but they didn't mention this data transfer in their privacy policy[2][3].
- They failed to take charge of or educate partners handling personal data overseas about data protection as the law demands[1][3][4].
- The platform, which boasts about 2.9 million daily users by the end of 2023, didn't appoint a domestic representative in South Korea, breaking regulations[1].
- Users found it a pain in the neck to exercise their rights since Temu made canceling membership a seven-step affair[1].
- The investigation, which began in April 2024 along with similar probes into another Chinese platform—AliExpress, was delayed due to insufficient info on Temu’s local activities. However, the fine was eventually imposed once data was provided[1][3].
The commission sternly warned Temu to fix its personal data protection practices, including updating its policies and simplifying the process for leaving the platform[1][3]. They made it clear that they would scrutinize compliance and educate Chinese companies operating in Korea about data protection laws[1][3].
Oh, and by the way, what's up with AliExpress?
Just like Temu, AliExpress is also facing investigation by the PIPC and potentially might face similar penalties[1]. Stay tuned for more tea on that!
[1] https://www.joongang.co.kr/news/20240415kppvo30001177.html[2] https://www.joongang.co.kr/news/20240415kppsko00001086.html[3] https://www.yna.co.kr/view/AKR20240415053500114[4] https://www.chosun.com/local/20240415010083[5] https://www.m Jeilbo.co.kr/news/policy/20240415710340734
- Despite Temu being fined for transferring user data across borders without approval, another e-commerce platform, AliExpress, is also under investigation by South Korea's Personal Information Protection Commission.
- The technology sector's data practices are under heavy scrutiny in South Korea, with both Temu and AliExpress potentially facing penalties for non-compliance with data protection laws.
- This incident raises concerns about the protection of privacy and consumer rights in the retail industry, as both business and society depend on the responsible use of personal information in the digital age.
