The German government is developing an action plan to address concerns over the Asian shopping platforms Temu and Shein. These platforms are popular with consumers but face criticism over product quality, safety, and competition issues.
Government aims to tighten oversight on Temu and Shein
Germany’s Federal Minister for Economic Affairs, Robert Habeck (Green Party), is planning to put more scrutiny on the Asian shopping platforms Temu and Shein. A spokesperson for the ministry confirmed that an “E-Commerce Action Plan” is being drafted, as first reported by the business magazine Capital.
“It is crucial that the existing legal provisions are enforced just as strictly for third-country sellers as they are for EU sellers,” said a ministry spokesperson to Capital. This includes standards for product safety, environmental protection, and consumer rights, as well as customs and tax laws. The ministry is currently reviewing new measures and potential changes to existing regulations. Further details of the plan remain undisclosed.
In response, a Shein spokesperson said, “We are committed to complying with German and European laws and support all efforts that create fair competition benefiting consumers.” Temu, on the other hand, did not immediately comment when asked by the dpa news agency about the government’s action plan. Temu had previously defended itself, emphasizing the strict controls and safety standards required from its suppliers.
Widespread usage amid growing concerns
According to a survey conducted by Cologne’s retail research institute IFH, Shein and Temu are extremely popular in Germany, with 43% of consumers purchasing from these platforms. Despite their popularity, the platforms face criticism from trade representatives, politicians, and consumer protection groups. Key concerns include product quality, insufficient oversight, manipulative sales tactics, and unfair competition.
A particular issue involves the use of legal loopholes, such as the €150 customs exemption threshold. The Asian platforms often use air freight for shipping, and packages from non-EU countries valued at under €150 are not subject to import duties. Critics argue this gives platforms like Shein and Temu an unfair advantage.
Shein’s CEO defends business practices
Shein CEO Donald Tang has rejected accusations that the company relies on customs benefits. In an interview with the Handelsblatt, he stated, “Our business model is not based on customs advantages. If the customs laws change, we will comply.” He also denied claims that many shipments are falsely declared to stay within the €150 limit, insisting the company provides customs authorities with all necessary information.
Regarding the criticism of product quality, Tang said, “It’s an image problem. There’s an old saying: If something is cheap, it can’t be good. We are changing that.” He also addressed accusations of poor working conditions and low standards, stating, “We are aware of these concerns, and we are addressing them one by one. However, many of these claims are not accurate.” Tang stressed that product quality is a top priority, highlighting that the company conducted 400,000 tests last year to ensure compliance with regulations. “Customer safety is our absolute priority,” he concluded.
