"Countless violations"
Trade association takes action against low-cost store Temu
The Austrian Retail Association has submitted a twelve-page complaint against the Chinese low-cost marketplace Temu to the Austrian Federal Competition Authority (BWB). The industry representatives identify unfair business practices on the part of Temu.
Recently, "countless infringements" have been proven and documented, said Rainer Will, Managing Director of the Austrian Retail Association, to APA. The online marketplace violated several provisions of the Unfair Competition Act (UWG).
Association accuses Temu of lying on platform
The trade association sees false claims about the limited availability of goods, misleading information about price reductions and false claims about an alleged shortage of goods. According to the lobbyists, Temu "obviously arbitrarily displays so-called EIAs, i.e. non-binding manufacturer price recommendations, which are supposedly significantly undercut by the actual sales price".
"In Austria alone, 30,000 parcels now arrive every day from Asian online platforms that do not adhere to the applicable rules of the game," criticized Will. "The unfair practices outlined above presumably lead to millions of sales, which cause lasting damage to Austria as a domestic business location," writes the trade association in its complaint to the BWB. Action must be taken against the business practices used by Temu "in order to ensure fair competition on the Austrian and European market".
Temu and Shein ordered to disclose information
At the end of June, the European Commission demanded more information from the Chinese online retailers Temu and Shein regarding their actions against illegal products and consumer manipulation. The Brussels authority issued a request for information on the basis of a new EU law on digital services (Digital Services Act). Among other things, the Chinese companies are to provide more information on the measures they take to protect consumers.
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