From registration failures to unsafe products, governments are tightening rules on Temu’s business model.
Temu, the fast-rising e-commerce platform known for its steep discounts and aggressive marketing tactics, is facing mounting regulatory pushback worldwide. Earlier this week, the Competition Commission of Pakistan (CCP) urged the Pakistan Telecommunication Authority (PTA) to ban the platform after reviewing complaints from local sellers and trade bodies, including the Chainstore Association of Pakistan and the Pakistan Retail Business Council. Pakistan is not alone in raising alarms. From Southeast Asia to Europe, a growing list of governments have either restricted or outright banned Temu, citing concerns ranging from predatory pricing and unfair competition to consumer protection risks and data security threats.
Indonesia
In October 2024, Indonesia became one of the first countries to act against Temu, asking Apple and Google to remove the app from local stores. Regulators cited its below-cost pricing model and direct-to-consumer approach as a threat to small and medium enterprises, which form the backbone of the economy. Officials argued the platform was bypassing local import rules, destabilizing the e-commerce ecosystem, and undermining fair competition.
Authorities also noted Temu’s failure to register as an electronic system operator (PSE), making its operations non-compliant with Indonesian law. Industry groups warned that local SMEs could not survive if Temu’s ultra-low pricing continued unchecked.
Vietnam
In November 2024, Vietnam’s Ministry of Industry and Trade suspended Temu’s operations after the platform failed to meet registration requirements. Regulators pointed to its aggressive promotions and commission structures, which they said created an uneven playing field for local retailers. Authorities also flagged consumer protection risks, including counterfeit goods and the lack of local accountability, as key reasons for the suspension.
France
In 2024, France moved to restrict Temu’s operations following investigations by consumer watchdogs that highlighted misleading advertising, unsafe or non-compliant products, and opaque return policies. Authorities required the platform to remove products that failed to meet European safety standards and to improve the visibility of seller information and consumer rights on its app and website. Officials stressed that platforms serving French consumers must fully comply with EU regulations on product safety, fair advertising, and transparency, noting that Temu had fallen short on several counts.
United States
In the United States, Temu has not been formally banned but has drawn intense scrutiny from lawmakers, regulators, and consumer groups. Much of the concern centers on the platform’s use of the “de minimis” loophole, a trade rule that allowed goods valued under 800 dollars to enter the country duty-free. By breaking up bulk orders into thousands of small packages, Temu was able to bypass tariffs and customs checks, giving it a major cost advantage over domestic retailers. Critics argue this tactic amounted to exploiting the system, hurting local businesses that must pay full import duties and comply with stricter regulations.
Beyond trade practices, Temu has also faced investigations into data security and consumer privacy, with state attorneys general raising questions about how the platform handles user information. Reports of counterfeit or unsafe products on the app have added pressure for stricter oversight. While the platform continues to operate in the U.S., lawmakers are pushing for tighter controls to ensure fair competition and consumer protection.
Uzbekistan
In early March, Uzbekistan announced it would block access to Temu starting March 20, 2025, because the platform failed to register locally, which is a requirement under recent e-commerce rules. Authorities urged users to stop placing orders and request refunds for any pending purchases.
The block stems from Temu’s non-compliance with multiple Uzbek regulations covering e-commerce operations, retail trade, advertising, data protection, consumer rights, and intellectual property rights. Although the platform eventually registered as a legal entity and began tax registration, unresolved issues remain, particularly regarding unpaid taxes for prior periods, estimated at around 46 billion soums. Negotiations are ongoing before any lifting of the block can occur.
The ban has already impacted its popularity. Temu’s app fell from the top spot to 35th on Google Play and dropped out of the top 50 on the App Store among Uzbek users.
South Korea
Temu faces regulatory scrutiny in South Korea over toxic or unsafe products, especially in the children’s goods category. Authorities demanded removal of harmful items that exceeded safety limits; investigations into data protection practices are also underway.
Where does Pakistan stand?
Now, Pakistan is considering its own restrictions. The CCP’s letter to the PTA reflects growing frustration among local retailers who argue that Temu’s practices are hollowing out domestic businesses. If the PTA acts on the CCP’s recommendation, Pakistan would join a growing list of countries seeking to draw a line between fair competition and market disruption.
