Federal Minister of Economics Robert Habeck (Greens) wants to focus more closely on the Asian shopping portals Temu and Shein. A spokesman confirmed that an “e-commerce action plan” is being drawn up. The business magazine “Capital” had previously reported on this.
“It is crucial that existing legal regulations are enforced just as consistently against traders from third countries 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 spokeswoman for Shein said when asked about the action plan. When asked, Temu said that as a “new provider in Europe” it had listened carefully to feedback from customers, regulators and consumer protection groups. “We have actively adapted our services to local customs and preferences and are fully committed to complying with the laws and regulations of the markets in which we operate,” said a spokeswoman.
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.
There are also complaints that providers benefit from legal loopholes such as the 150 euro customs exemption 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 goods 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 said: “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 allegedly poor working conditions and low standards, he said: “We are aware of these concerns and we are tackling 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 regulations. Customer safety is the absolute priority.
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