German Trade Association Files Complaint Against Chinese Online Retailer Temu

The German Trade Association (HDE) has lodged a formal complaint with the Federal Cartel Office regarding the operations of the Chinese online marketplace Temu. The association alleges that Temu is engaging in anti-competitive practices that undermine fair market competition.

According to the HDE, Temu is infringing upon the pricing autonomy of its partner merchants by imposing strict pricing guidelines. Specifically, the platform dictates that the prices set by sellers cannot exceed 85% of the prices offered for similar products on competing platforms. Furthermore, Temu reserves the right to determine the final sale prices of the items listed by vendors, which the HDE argues is a clear violation of fair trading practices.

In addition to its pricing policies, the HDE has expressed concerns over the compliance of products sold on Temu with German safety regulations. Numerous test purchases conducted by the association revealed that many items did not meet the requisite safety standards. The HDE emphasized that any business operating within Germany must adhere to local laws and regulations regarding product safety.

The HDE has been vocal about its apprehensions regarding online shopping platforms like Temu and Shein, calling for increased scrutiny from both national and European authorities. Recent actions by the German government and the European Union indicate a willingness to enhance oversight of these platforms, especially in light of problematic practices such as misleading discount offers, fake reviews, and inadequate consumer rights information.

The ongoing concerns about Temu are part of a broader dialogue on the competitive landscape of the e-commerce sector, where companies from outside the EU are gaining significant market share by leveraging aggressive pricing strategies. As the HDE continues to advocate for stricter regulations, the outcome of its complaint may have far-reaching implications for the future of online retail in Germany.