Online business competitors lodging antitrust grievance against e-commerce platform Temu - Merchants File Grievance Against Online Retailer Temu at Government's Office
Hey there! If you're into retail, this one might interest you. The German Retail Association (HDE) has launched a complaint against the Chinese online retailer, Temu, accusing the company of violating several regulations and laws, including pricing restrictions, product safety concerns, and false advertising.
In their complaint, the HDE highlighted the ways that Temu allegedly limits the pricing freedom of its commercial partners, requiring sellers to set prices no more than 85% of those for similar products sold on other platforms. The retail association also took issue with Temu's practice of reserving the right to determine final sale prices.
Moreover, the HDE addressed product safety issues, stating that certain products sold on Temu did not meet German safety regulations. They also raised concerns over the use of deceptive tactics by Temu, such as false countdowns for discount campaigns, which the HDE categorized as unfair commercial practices.
Temu has become popular for its extreme bargains, but the company has faced criticism for poor quality, undelivered shipments, and environmental impact.
Alexander von Preen, President of the HDE, explained their stance, stating that domestic retail companies invest heavily in environmental and consumer protection regulations and make significant contributions to the public sector through taxes. He argued that platforms like Temu, which flout these regulations, undermine the efforts of legitimate retailers.
The Federal Cartel Office is currently reviewing the complaint, marking a broader effort to scrutinize platforms like Temu as they gain market share in Germany. The allegations against Temu could potentially result in fines or changes in the company's business practices to comply with German and EU regulations.
- Temu
- Complaint
- HDE
- German Retail Association
- Federal Cartel Office
- Cartel Office
- Retail
- China
[Enrichment Insights]The HDE's complaint against Temu also includes allegations related to price comparison practices, where Temu is accused of failing to comply with the requirement to indicate the "best price" over the past 30 days. This practice, also known as "price comparison" or similar indicators, is crucial for helping customers make informed buying decisions.
Additionally, it's worth noting that the dispute is part of a broader concern over the increasing market share of online platforms like Temu in Germany and their compliance with fair competition regulations. The investigation process by the Federal Cartel Office is typically lengthy and involves detailed analysis of the allegations.
The specific regulations and laws allegedly violated include:- Pricing Freedom- Product Safety and Compliance- Unfair Commercial Practices
If found in violation, Temu could face significant fines or changes in its business practices to comply with Germany and EU regulations. Stay tuned for updates on this developing story!
The German Retail Association (HDE) has accused Chinese online retailer Temu of violating pricing freedom regulations, as it allegedly forces sellers to set prices no more than 85% of those for similar products sold on other platforms.
The HDE is also concerned about Temu's practice of reserving the right to determine final sale prices, as well as the company's compliance with product safety regulations in Germany.
The Federal Cartel Office is currently reviewing the complaint against Temu, which could result in fines or changes in the company's business practices to comply with German and EU regulations.
