Temu’s logo (Photo: a screenshot from Temu’s website)
SEOUL, Apr. 8 (Korea Bizwire) — 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 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.
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.”
Last week, Ko Hak-soo, the chairperson of the Personal Information Protection Commission, told reporters that the watchdog is looking into how Chinese e-commerce firms, such as Temu and AliExpress, have been collecting and using consumer data amid lingering concerns over their protection of personal information.
(Yonhap)
