Shein and Temu under fire in Germany as government cracks down on dangerous products, unfair trade

Germany’s Federal Ministry of Economic Affairs has decided to tighten its surveillance on Shein and Temu, with the aim of imposing stricter regulations on product safety and fair trade. The move follows growing pressure from retailers and government agencies concerned about the impact of non-EU e-commerce giants.

Germany takes action against Shein and Temu

A representative from Germany’s Federal Ministry of Economics acknowledged to Capital magazine (via Yahoo Finance) that the ministry is responding to concerns about the business practices of “Chinese discounters” Temu and Shein by developing an “e-commerce action plan.”

The representative stressed the need to implement legal requirements in the same way for traders from third countries and the EU.

“It is essential that existing legal provisions are applied in the same way to traders from third countries as to EU traders. This applies to standards applicable to product safety, environmental protection and consumer protection, as well as customs and tax law.”

Germany considers new trade regulations

The Ministry of Economic Affairs is rumoured to be studying new policies and possible changes to current rules. The federal states, the European Commission and the European Parliament have all been involved in the debates over capital claims in recent months.

HDE, Germany’s leading retail association, has reportedly lobbied the government to ensure fair competition. It also claims that customs officials “lack the capacity” to check that all imported goods comply with EU regulations.

Temu and Shein meet German officials

Representatives of Temu and Shein met in June with the German State Secretary at the Federal Ministry for Economic Affairs and Climate Action to discuss these issues.

The objective, as stated by the government, is to guarantee fair competition for all market players.

A little over a year ago, the Temu online store joined the European market, according to a spokesperson who spoke exclusively to Just Style.

“We have listened carefully to feedback from our customers, regulators and consumer advocacy groups. We have actively adjusted our services to align with local practices and preferences, and we are fully committed to complying with the laws and regulations of the markets in which we operate.”

The German Retail Association also expressed its disapproval of the “unacceptable conditions” and called on the authorities to do something about it, as Capital points out.

Safety concerns weigh on Shein and Temu

Several scandals have recently erupted involving Shein and Temu. The two members of the US CPSC who made allegations last week that Shein and Temu were offering “deadly products for babies and toddlers” have prompted the organization to launch an investigation into the matter.

In response to allegations of forced labour in its supply chain, human rights organisation Stop Uyghur Genocide (SUG) has urged the Financial Conduct Authority (FCA) to reject Shein’s application to list on the London Stock Exchange.