Regulator launches probe into China's Temu over unfair biz practices


Seoul, Apr 8 (IANS): South Korea's antitrust regulator has launched an inspection into China's Temu shopping app on suspicions of the retail platform's false advertising and other unfair business practices, officials said on Monday.

The Fair Trade Commission (FTC) recently sent documents to Temu for a probe to see if it violates South Korea's e-commerce acts and advertisement regulations by making false and exaggerated advertisements, according to the government and industry officials.

The document-based probe came as its South Korean subsidiary, Whaleco Korea LLC, has yet to come into full operation after being established in February, they added, reports Yonhap news agency.

The regulator is also looking into if Temu fulfills due responsibilities to protect consumers, as complaints filed against Temu have been rising, which centered on poor product quality and delivery issues.

Temu has also been facing controversy over its use of cash coupons and multi-level marketing strategies to attract more customers since its advance into the highly competitive South Korean market in July last year.

The FTC refused to confirm if any probe is going on into the Chinese platform, simply vowing "a stern response to any violations."

  

Top Stories


Leave a Comment

Title: Regulator launches probe into China's Temu over unfair biz practices



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.