Chinese Merchants Protest High Penalties Imposed by Temu Amid Stiff Competition

Chinese sellers on Temu have launched protests against high penalties for product returns, citing unfair practices. The penalties, which can be as high as five times the sale value, have led to bankruptcy for some merchants. Temu claims these actions uphold marketplace quality while working on dispute resolution.

Dozens of Chinese sellers on the e-commerce platform Temu have protested against what they describe as excessively high penalties imposed by the company. The penalties, which can be as much as five times the sale value for returned products, have left many merchants on the brink of bankruptcy.

One garment seller from Guangzhou explained how the new penalty system, introduced in April, has made it financially impossible for many vendors to continue. She recounted her futile efforts to resolve the issue at Temu's headquarters, alongside hundreds of other frustrated merchants.

Temu, owned by PDD Holdings, stated that the penalties are necessary to maintain marketplace quality and emphasized that most merchants are seeing increased sales. The company assured that they are working on dispute resolution mechanisms to address vendors' concerns.