In case of rule breaking
Rossmann boss wants Temu to be switched off
May 5, 2024, 5:59 p.m
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With its extremely low prices and high discounts, the Chinese online platform Temu also attracts German customers. Drugstore boss Raoul Roßmann not only criticizes the questionable business model. He also calls for more consistent action against the platform.
In the opinion of drugstore boss Raoul Roßmann, the Chinese cheap platform Temu should be punished more consistently for disregarding the law. “In Germany there is freedom for questionable digital business models,” said the boss of the Rossmann chain to the Handelsblatt. “If Temu doesn’t follow the rules, it should simply be shut down.” Roßmann sees France as a model, where fines and advertising bans are to be introduced.
The PDD Holdings group is behind the online marketplace, which is known for its low prices. Pinduoduo is the Temu counterpart for the Chinese market. Both apps offer extreme bargains and high discounts, but Temu has also recently been criticized. The consumer advice center, for example, urged caution: Customers reported on rating portals that the products were of poor quality and that shipments had not been received.
Both the federal government and the Federal Association of Consumer Organizations (VZBV) platform also accuse Temu of misleading consumers with seemingly arbitrary discounts, questionable reviews and manipulative designs. The Chinese company contradicted the allegations.
Consumer advocates are examining a lawsuit. Consumer Protection State Secretary Christiane Rohleder recently pointed out that the EU Digital Services Act had banned the manipulative design of online platforms. “It is therefore important that these regulations are now enforced,” said Rohleder.
Temu justifies itself: “Many of our sellers are manufacturers who traditionally supply stationary stores,” said a spokeswoman in April. Use their recommended prices, which are based on those in stores, and highlight the savings based on that. Updates also reflected the real status of inventories.