Temu may receive a fine of up to HUF 780 billion

By: Trademagazin Date: 2024. 04. 03. 11:04

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The Economic Competition Authority (GVH) considers it justified to initiate the competition supervision procedure against the Chinese online store Temu, whose subsidiary in Ireland is being investigated for unfair commercial practices. In the case of the company, a fine of up to HUF 780 billion could be discussed, which would correspond to 13 percent of the international group’s annual sales.

During the procedure initiated following the notification of Ecommerce Hungary, the Competition Authority examined the notifications in detail and gathered information about the company’s activities. The GVH claims that Temu deceives consumers in several ways, such as using manipulative pricing and promotion practices, as well as exerting psychological pressure on customers with urgent messages.

In addition to the Chinese online store, the question of manipulation of product reviews and product safety concerns also arose. In connection with the CE markings applied to electronic products, suspicions arose that they do not meet the real safety requirements and may also sell dangerous products.