The Swiss Retail Federation files a complaint against Temu

The Swiss Retail Federation files a complaint against Temu
The Swiss Retail Federation files a complaint against Temu

By

AFP

Published on

June 3, 2024

The Swiss retail association has filed a complaint with the Ministry of the Economy against the Chinese online commerce platform Temu, denouncing “unfair commercial practices”, it told AFP last Thursday.

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The complaint was filed alongside other associations, including the Swiss Association of Toy Retailers and the Swiss Textiles federation, she told AFP, confirming newspaper information from the Swiss group Tamedia.

“There are significant suspicions of illicit advertising”, estimates this association called Swiss Retail Federation, which blames “discounts”, “crossed out prices” and “repeated advertising with offers below the cost price”. The association also refers to “deception on the availability of offers”.

It therefore contacted the State Secretariat for the Economy (Seco) to ensure that Temu complies with competition rules as required by the federal law against unfair competition.

According to her, “there is a general public interest, both on the part of consumers and competitors in Switzerland, for Seco to quickly carry out clarifications”.

Contacted by AFP, Seco confirmed having received this complaint on Thursday, explaining that it had “not yet been able to examine it”. Seco can intervene in particular through criminal action. However, it is up to the criminal authorities to impose sanctions, he specifies.

Owned by the Chinese online commerce giant Pinduoduo, the Temu application – which has built its success on its low prices – is in the crosshairs of several countries.

In France, the UFC-Que Choisir association filed a complaint in mid-May with the Audiovisual and Digital Communication Regulatory Authority (Arcom), accusing Temu of not guaranteeing its users “a safe online environment , predictable and trustworthy.

At the start of the year, the German Federation of Consumer Organizations (VZBV) for its part accused Temu of displaying misleading opinions on the products sold and of misleading consumers about the display of price reductions. It has obtained modifications from Temu which, however, currently only apply to the German market.

Once a featherweight in e-commerce, Pinduoduo is now a major competitor in China to the juggernaut Alibaba. In the first quarter, Pinduoduo’s turnover soared 131% year-on-year, to 86.8 billion yuan (11 billion euros).

(AFP)

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