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South Korea launches probe into Temu

South Korea’s Fair Trade Commission initiated an investigation into Temu, a cross-border e-commerce platform owned by Pinduoduo, on Monday, suspecting it of using false and exaggerated advertisements. Temu’s recent establishment of a legal entity in South Korea has prompted this inquiry, focusing on potential violations of consumer protection laws and advertising regulations. The investigation follows concerns about Temu’s marketing tactics, including controversial strategies like cash coupon distribution and allegations of delayed deliveries and low product quality. There is speculation that the commission may broaden its probe to include other Chinese e-commerce platforms after similar investigations into AliExpress.

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