EU-Level Action Urged Against Shein and Temu by Trade Association for Persistent Violations - Union Activists Urge EU to Take Strong Measures Against Temu and Shein
In the European Union, regulatory scrutiny has been heightened against major Chinese e-commerce platforms, notably Temu and Shein, amid allegations of breaches in consumer protection laws and online platform rules.
The European Trade Association has demanded immediate action against these platforms at the EU level. The Association argued that companies within the EU, which must abide by all regulations, are unfairly exposed due to a lack of control and compliance with EU standards by their Chinese competitors. Thousands of supplier companies face sales losses of up to 60 percent due to this unfair competition.
The Trade Association, known as HDE, supports several regulatory measures to level the playing field. One proposed measure is the abolition of the 150-euro duty-free limit and the imposition of a handling fee for Chinese packages. According to reports, this fee would only be applicable for shipments from countries outside the EU and would only impact goods destined for end consumers. The HDE believes that implementing such measures would help reduce the influx of inexpensive goods from domestic trading companies.
Temu and Shein, both founded in China, have gained popularity due to their low-cost offers, particularly Shein in clothing. The European Commission is already conducting investigations into both discount retailers for potential breaches of EU consumer protection laws and rules for online platforms. Recently, the Commission announced a flat fee of two euros on parcels from countries outside the EU destined for private households.
Earlier this year, the HDE lodged a complaint with the Federal Cartel Office against Temu, alleging that Chinese platforms like Temu sell goods on the European market without adhering to the applicable regulations.
The EU is taking a multi-dimensional approach to regulating Chinese e-commerce platforms. This includes implementing new tariffs, targeted handling fees, consumer protection investigations, and enforcing digital service rules. The aim is to ensure fair competition, protect consumer rights, and provide a level playing field for European businesses while safeguarding consumers from deceptive practices.
The Commission has not yet adopted a decision on whether Article 93 (2) of the Treaty will be applied to the aid scheme aimed at supporting European businesses, particularly those in the retail and finance industry, that are struggling due to unfair competition from Chinese e-commerce platforms like Temu and Shein. The lack of compliance with EU standards by these platforms has notably heightened concerns for local businesses that must abide by all regulations.
