Hundreds of merchants protest against Temu fines

Hundreds of Chinese sellers on Temu have protested against what they describe as excessively high penalties imposed by the platform. Temu, an international online marketplace owned by PDD Holdings, has seen increased competition with rivals like Shein since its launch in September 2022. Merchants claim that new penalties introduced in April can reach up to five times the value of a sale when customers return products, causing significant financial strain.

A garment seller from Guangzhou reported that Temu has not adequately addressed their concerns despite urging vendors to register their fines. That led to a larger protest involving around 400 to 500 merchants from China on 29 July. Protesters shared videos online showing large crowds outside Temu’s headquarters, highlighting the widespread discontent among sellers.

Temu acknowledged the protest, noting that most participants were garment sellers who were also active on Shein. The company emphasised its efforts to resolve disputes and maintain quality standards, though some merchants argue that the penalties drive them out of business. Despite the challenges, Temu claims that most merchants on the platform are flourishing and benefit from increased sales and customer satisfaction.

Many sellers, however, remain in a difficult position. One vendor, facing fines nearly triple her initial estimate, expressed the struggle of balancing penalties with minimal profits. Another merchant, unable to quit due to financial commitments, described the situation as having ‘no way out.’ Temu maintains that while penalties are essential for quality control, they aim to enforce them fairly and resolve disputes effectively.