Temu, which has also become the most popular foreign online store in Finland, has entered the world market with a rush.
The Chinese Online Stores that are taking over the market with cheap prices have put the authorities of different countries on their toes.
Recently, attention has been focused especially on the aggressively self-promoting Temu, which also became Finland’s most popular foreign marketplace in February due to its number of visits.
Competition authorities in the United States, Europe and other parts of the world have examined the company’s operating methods, advertising and use of user data. Now at least South Korea and Germany are planning to take action to rein in the online shopping giant.
AFP reported on Monday, according to news agency Yonhap, that South Korea’s competition authority has started an investigation in which Temu is suspected of false advertising and unfair competition. Temu is also suspected of having violated the principles of consumer protection, as there have been complaints about the quality of its products.
Temu has not commented on the news to AFP.
News agency DPA said on Monday that Germany also has similar plans. The federal government demands that Temu’s consumer-manipulating purchase incentives be investigated in court.
– Games, wheels of fortune, discount campaign counters and other methods give an image of incredible discounts and offers, said the state secretary responsible for consumer protection Christiane Rohleder.
The European Union’s digital services regulation, which entered into force in 2022, prohibits user manipulation with service design.
– It is important that these regulations are put into practice now, Rohleder said.
A representative for Temu rejected the allegations, saying the company’s discounts reflect sellers’ suggested retail prices and what the product costs in brick-and-mortar stores.
Founded in 2022, Temu is owned by a Chinese company called PDD Holding. According to Temu, there are more than 80,000 suppliers in its online store.