
Chinese vendors on Temu protest against alleged 'unreasonable' penalties
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A dozen of Chinese merchants on Temu, the eCommerce platform run by PDD Holdings, have gathered at its Guangzhou logistics affiliate to protest against the alleged high penalties imposed by the company.
In a statement seen by MARKETING-INTERACTIVE, Temu's spokesperson confirmed the group of protesters included about a dozen sellers, most of whom are clothing sellers who also operate on Shein.
"They were unhappy with how Temu handled after-sales issues related to the quality and compliance of their products, disputing an amount worth several million yuan. These merchants have declined to resolve the disputes through the normal arbitration and legal channels stated in the seller agreements," the spokesperson said.
The spokesperson added that the situation is stable and the company is actively working with the merchants to find a solution.
"Temu's platform policies are designed to foster a fair and thriving marketplace for all parties. We prioritise transparency and clearly communicate our rules and penalties. These rules ensure high levels of product compliance, customer service, and regulatory adherence," the statement reads.
Temu also said that the majority of its merchants experience success under these guidelines, benefiting from increased sales and positive customer feedback.
"While penalties are necessary to maintain a high-quality marketplace, we are committed to fair enforcement and dispute resolution. We acknowledge that some merchants may encounter challenges, and we continuously work to help them improve their product quality."
"Our overarching goal is to create a fair and reliable marketplace that supports the success of compliant merchants while protecting consumers."
According to Reuters, one of the protestors, who is also a garment merchant said Temu unveiled new policies in April which can accumulate up to five times the value of a sale when customers return their purchases for a refund.
Another protestor said merchants were asked to register the number of fines they needed to pay, however the company did not answer their requests. As such, around 400 to 500 sellers assembled at Temu’s Guangzhou office on Monday.
Some said many sellers have gone bankrupt or decided to close their business since Temu introduced the new penalties, which include fines on various issues such as unsuitable clothing sizes.
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