EU Investigates Temu, Shein Over Product Safety, Consumer Protection Concerns
The EU Commission is investigating popular but controversial online retailers Temu and Shein for potential regulatory violations. Despite facing criticism for product quality and competition concerns, these Asian shopping portals are gaining popularity in Germany, with Temu and Shein ranking among the top online shops.
Temu and Shein have risen rapidly in the German e-commerce market. Shein, for instance, climbed from 18th to 7th place in the 'E-Commerce Market Germany 2025' study, while Temu nearly quadrupled its gross merchandise volume to 3.4 billion euros. Their success can be attributed to low prices, a vast product range, and engaging features. However, their growth has not gone unnoticed by regulators.
The EU Commission is currently investigating Temu for a high risk of consumers finding illegal products, such as unsafe baby toys and electronics. Shein, on the other hand, is accused of violating EU consumer protection regulations by providing unclear or deceptive information. Both companies could face penalties and be required to comply with regulations. Meanwhile, established retailers like Amazon, Otto, and Zalando maintain their top positions, with Amazon leading marketplaces by a significant margin. Shop Apotheke and Rewe have also made significant strides, ranking 8th and 9th respectively.
Despite facing investigations, Temu and Shein continue to grow in popularity, challenging established retailers. Their success highlights the increasing demand for affordable, diverse online shopping options. As these Asian shopping portals expand, regulators will continue to monitor their compliance with EU regulations.
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