Temu’s Chinese suppliers protest in Guangzhou over penalty policy

Gdansk, Poland – March 2023 Temu app icon in screen of MacBook Apple computer laptop with shopping cart. Temu subsidiary of China based e-commerce platform Pinduoduo. Online shopping Temu website Credit: 123rf

Hundreds of Chinese suppliers gathered outside Temu’s Guangzhou office building for a few days at the end of July to protest, as merchants were growing angry over the e-commerce platform’s after-service sales penalty policy. Videos circulating on social media platforms showed part of the protesters even getting into Temu’s office on the 25 floor, despite strict entry restrictions, with common demand to get back their retention money, which was being deducted on a pro-rata basis by the Pinduoduo sister app in response to post-sale issues. According to Chinese media outlets that had talked to the protest suppliers, Temu has been issuing a large number of fines since March without explaining the specific problems that have been violated in each case, with the maximum penalty reaching five times the declared price of the goods. Fines imposed on sellers have ranged from tens of thousands to millions of yuan. Temu hasn’t officially replied yet. [Securities Times, in Chinese]