The Chinese e-commerce app Temu is under investigation in South Korea for suspected false advertising and unfair competition practices. The app, which has aggressively expanded into multiple countries with online marketing strategies, is accused of enticing customers with discounts and incentives such as spin-the-wheel promotions but with minimum purchase requirements.
Temu, a subsidiary of Chinese company PDD Holdings, has faced scrutiny in the United States and Europe for its business practices and financial disclosures. The company’s fast expansion into new markets has raised concerns about its operations, especially amid growing tensions between the US and China. In France and Britain, Temu faced backlash for a campaign offering shopping vouchers to new customers that was ended due to concerns about the use of customer data.
South Korean competition authorities have launched an investigation into Temu’s marketing and business practices, adding to the scrutiny faced by the app. The market dominance of Temu and its aggressive marketing tactics have led to increased regulatory interest and consumer complaints in multiple countries. While Temu did not comment on the recent investigations in South Korea, it is clear that the app’s operations are being closely monitored by regulators around the world.
