Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = The Fair Trade Commission(hereinafter referred to as the FTC) is investigating Chinese online shopping platform company Temu. The FTC will look into the company’s compliance with its consumer protection obligations under the E-Commerce Act, as well as allegations of false and misleading advertising and sales, including the sale of fake goods and deceptive advertising.

On the 8th, the FTC announced that it was recently investigating Chinese platform company Temu for violations of the E-commerce Act and Labeling and Advertising Act. The FTC plans to conduct a written investigation through Temu’s representative in Korea(Kim & Chang Law Firm) and conduct an on-site investigation in the future.

The FTC said it plans to investigate Temu’s obligations as a mail-order business to display its representative’s name and business name when displaying and advertising its products, the act of using false or exaggerated facts or deceptive methods to induce or transact with consumers, and the act of deceiving consumers through false or exaggerated advertisements.

Previously, Temu was known to have numerous cases of counterfeit sales and fishing advertisements. Temu became controversial by distributing cash coupons and using ruleset games and multi-level methods to increase new members. Additionally, consumer complaints continue due to delivery delays and poor quality.

The FTC will conduct market surveys to address consumer harm and reverse discrimination by foreign e-commerce companies. The FTC will conduct an in-depth analysis of the e-commerce market structure and competition status.

By Soon-ki Lee(s8789@nspna.com) and Ae-kyoung Jung(Aekyung@nspna.com)

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