As reported by capital.de, the Federal Ministry of Economics is planning an "e-commerce action plan" to take action against the practices of the "Chinese low-cost shops" Temu and Shein. These companies have been criticised for months, in particular for their extremely low prices, aggressive marketing strategies and questionable import practices (trade-e-bility reported). The German Retail Association HDE complained of "untenable conditions" and accused the two platforms of unfair competition, prompting politicians to take action.
The action plan aims to ensure fair competitive conditions. According to a spokesperson for the ministry, the same regulations in areas such as product safety, environmental protection and consumer protection should apply to retailers from third countries, such as Temu and Shein, as to EU retailers. Customs and tax regulations are also to be enforced more consistently.
The Ministry of Economic Affairs is currently examining measures and adjustments to existing regulations in order to address the problems. In recent months, talks have been held with the federal states, the EU Commission and the EU Parliament. State Secretary Sven Giegold met with representatives of Temu and Shein in June to discuss possible solutions.
Amid the criticism, Shein has received prominent support by hiring former EU Commissioner and former Prime Minister of Baden-Württemberg, Günther Oettinger, as an advisor. This development shows that companies are trying to prepare themselves for the growing political and regulatory attention.
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