Displeasure with Temu: shopping platform criticized in China as a "slave owner"

In Germany, consumer advocates in particular have set their sights on Temu. They accuse the e-commerce giant of unfair business practices such as arbitrary discounts and manipulative designs ("dark patterns"). However, protests are also on the rise at the headquarters of Temu's parent company Pinduoduo (PDD) in Guangzhou in southern China. Hundreds of traders gathered outside the company's offices at the beginning of the week, according to Chinese media such as the South China Morning Post. Angry traders even forced their way into the PDD building and blocked corridors.

One reason for the protesters' frustration is precisely the measures that Temu has taken to ensure the quality of the goods on offer in response to pressure from Germany and Europe, for example. For example, they complained about unreasonably high fines imposed on them by PDD. In addition, the company often withholds payments to be able to impose future penalties more easily. Sanctions were imposed, for example, if retailers missed delivery deadlines or the product descriptions did not correspond to the goods. One of those affected wrote on his T-shirt: "PDD, give me back my hard-earned money."

A group of traders recently held a protest action at a Temu logistics company, a spokesperson confirmed to FAZ. They were mainly clothing sellers who are also active at one of the largest competitors, the fast fashion platform Shein. Sanctions are necessary in the event of misconduct by retailers, PDD said, "to maintain a high-quality marketplace". In principle, however, the platform operator is "committed to fair enforcement and dispute resolution".

Rebellion of the oppressed?

A retailer specializing in yoga clothing, who did not take part in the current protests, complained to FAZ: "The platform demands that we offer the lowest price on the entire Internet, but nobody asks about quality. We retailers can't guarantee the lowest price and high quality at the same time." Customers can return goods effortlessly. The delivery costs then have to be paid by the suppliers, who are caught in the middle. Temu deducts the equivalent of around 5 euros for every delayed delivery. She is on the verge of giving up.

In China's social media, such as the TikTok sister Douyin or Weibo, posts about the protests elicited a large, albeit divided, response. PDD was only protecting the rights of users, for example. The retailers' advertising was often incompatible with reality. "To put it drastically, the platforms are slave masters," it said. One day, the oppressed will rise and rebel. As early as May, traders are said to have gathered in front of a Temu building.

Temu and Shein are causing existential fears in the retail trade in this country with their competitive prices for goods, which they often do not even have to pay duty on. After Temu, Shein also issued a cease-and-desist declaration to German consumer protection organizations in May and promised to make complaint channels and contact options more visible and to refrain from using dark patterns. A complaint is still pending against Temu from the European consumer protection umbrella organization Beuc for violations of the Digital Services Act (DSA). The EU Commission has sent DSA requests for information to both e-commerce giants.

(mma)