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Shopping app Temu in the hotseat

Trouble with Chinese shopping app Temu has been reported, with Otto Austria Group alleging Temu is guilty of 'systemic fraud'.

Provider Otto has sharply criticised the machinations of the Chinese competitor and accused Temu of fraud. Head of the Otto Austria Group, Harald Gutschi says in a Buzzfeed report: 'We do not shy away from competition, but the conditions are unfair.' He alleges that 65 percent of packages coming from China are falsely declared. These are either worth more than stated or the orders are packaged in individual shipments to avoid paying customs duties.


Temu allows for many products to be obtained at much cheaper prices than in local stores. The turnover of the Otto Austria Group decreased by 3.8 percent last year.

The consumer centre is currently examining legal action against Temu. The Consumer Federation of Germany (vzbv) had already warned the company several times. According to vzbv chief Ramona Pop, the platform confuses its potential customers with seemingly arbitrary discounts and manipulative designs. A very young target group is particularly susceptible to this.

Currently, there is a process of coordination within the consumer centre to decide whether a lawsuit should be filed against Temu. The main criticism is that it is not clear to customers how the high discounts are achieved. Temu has said it welcomes the opportunity to work with consumer groups: 'We want to ensure that our practices are fair.'


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