Temu Faces Scrutiny: Complaint Filed with Antitrust Authority

The online marketplace Temu is currently under scrutiny as the German Trade Association (HDE) has lodged a complaint with the Federal Cartel Office over alleged violations of pricing freedom regulations.

According to the HDE, Temu mandates that sellers list products at no more than 85% of the price of similar items found on competing platforms. Additionally, the platform reserves the right to intervene directly in pricing strategies, ultimately determining the final prices.

The Trade Association has raised concerns about further breaches of both German and European laws. Temu has been accused of frequently neglecting to provide the mandatory 30-day best price information, which is intended to highlight deceptively low-priced offers. Moreover, the platform reportedly employs misleading countdown timers during discount promotions to pressure consumers into making immediate purchases.

HDE President Alexander von Preen emphasized the necessity for compliance with local laws and regulations for businesses operating within Germany. Temu has faced ongoing criticism for issues including counterfeit products, as well as the sale of items that may contain harmful substances or pose safety risks.

Temu's challenges are not limited to Germany. In the United States, the government has imposed tariffs of up to 104% on imports from China, while also suspending the de minimis rule, which previously allowed for duty-free imports of shipments valued under $800. This rule had been utilized by platforms like Shein and Temu to sell goods at significantly reduced prices. The discussion surrounding duty-free imports of Chinese goods is also gaining traction in Germany.