E-commerce action plan

Low-cost retailers to be subject to stricter controls

The German Ministry of Economic Affairs wants to take tougher action against low-cost retailers such as the Chinese companies Temu and Shein. An "e-commerce action plan" is planned for this purpose, said a spokeswoman for the Ministry of Economic Affairs on Thursday.

"It is of crucial importance that existing legislation is enforced just as consistently against traders from third countries as it is against traders from the EU," the spokesperson continued to the magazine "Capital". This applies to the applicable standards for product safety, environmental protection and consumer protection as well as customs and tax law.

Temu and Shein have fallen into disrepute with European consumer advocates and trade associations due to their sales practices, products with poor safety standards and the circumvention of customs controls by packaging below customs borders. In Austria, the trade association recently lodged a complaint against Temu with the Federal Competition Authority.

Fair conditions for all
The German Ministry of Economic Affairs is currently examining new measures and adjustments to existing regulations. In recent months, talks have already taken place with the federal states, the EU Commission and the EU Parliament. The aim of the efforts is to "ensure fair competitive conditions for all market participants." The Ministry of Economic Affairs did not initially respond to a Reuters inquiry about the details of the plan.