Federal Minister of Economics Robert Habeck (Greens) wants to Asian shopping portals Temu and Shein A spokesman confirmed that an “e-commerce action plan” was being drawn up. The business magazine “Capital” had previously reported on this.
“It is crucial that existing legislation is enforced against traders from third countries just as consistently as against traders from the EU“, a spokeswoman for the ministry told “Capital”. This applies to the current standards for product safety, environmental protection and consumer protection as well as customs and tax law. The ministry is therefore examining new measures and the adaptation of existing regulations. Further details of the plan are not yet known.
“We are firmly committed to complying with German and European laws and support all efforts that create fair competition conditions that benefit consumers,” a Shein spokeswoman said when asked about the action plan. Temu had also recently defended itself against allegations and referred, among other things, to strict controls and safety standardsthat are required of suppliers. The company did not initially respond to a request from the dpa regarding the ministry’s action plan.
According to “Capital”, there have already been talks with the federal states as well as the EU Commission and the EU Parliament in recent months. State Secretary Sven Giegold (Greens) has reportedly met with representatives of Temu and Shein. The aim of the efforts is to “ensure fair competitive conditions for all market participants”.
Survey: 43 percent of consumers use Shein and Temu
Shein and Temu are very popular in Germany. 43 percent of consumers buy from the marketplaces, according to a recently published survey by the Cologne-based trade research institute IFH. However, the portals are controversial. Sales representatives, politicians and consumer advocates criticize product quality, a lack of controls, manipulative purchase incentives and unfair competitive conditions, among other things.
It is also complained that the suppliers benefit from legal loopholes such as the 150 euro duty-free limit. The Asian online platforms mainly use air freight. For orders from non-EU countries, no import fees have to be paid for packages with a value of less than 150 euros.
Shein boss: “We want to solve the problem proactively”
The company rejects criticism of its business practices. “Our business model is not based on customs advantages,” said Shein boss Donald Tang in an interview with Handelsblatt. If the customs law changes, this will be implemented. Tang also refuted the accusation that many shipments are incorrectly declared in order to comply with the 150 euro limit. The company is working on providing the customs authorities with the necessary information before the packages arrive at the airport. “If the authorities want us to do that, we would do it. We want to solve the problem proactively.”
Regarding criticism of product quality, Tang stated: “It’s an image problem. There’s an old saying: If something is cheap, it can’t be good. We’re changing that.” When asked about alleged poor working conditions and low standards, he said: “We are aware of these concerns and we are addressing these issues one by one. But I would like to stress that many of these allegations are not true.” Quality is the top priority. Last year, 400,000 tests were carried out to ensure that the products comply with the regulations. Customer safety is the absolute priority. (dpa)
