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Temu Faces Backlash in Pakistan over Alleged Consumer Exploitation and Market Disruption

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webdesk
April 6, 2025
Temu Faces Backlash in Pakistan over Alleged Consumer Exploitation and Market Disruption

A group of local sellers has formally lodged a complaint against the international e-commerce platform Temu, urging the Competition Commission of Pakistan to investigate the company for alleged anti-competitive behaviour and violations of consumer rights.

The complaint, submitted to the Office of Fair Trade (OFT) at the Pakistan Stock Exchange by independent sellers who allege that Temu’s operations in Pakistan are harming local businesses and misleading consumers.

Temu entered the Pakistani market just a few months ago and has since launched an aggressive advertising campaign, saturating digital platforms with promotional content. According to the complainants, this flood of online advertisements—many of which promote steep discounts and seemingly risk-free purchases—has contributed to a rapid rise in customer interest while simultaneously disadvantaging local businesses that cannot compete with Temu’s pricing and marketing scale.

Among the key grievances outlined in the document is Temu’s use of misleading promotional tactics, including the recycling of identical or nearly identical customer reviews across different product listings. The complainants argue that such practices compromise the authenticity of the platform and erode consumer trust. The complaint also highlights restricted payment options, noting that Temu only accepts debit and credit cards, while excluding cash-on-delivery (COD)—a popular payment method in Pakistan. This limitation, they argue, alienates a significant portion of Pakistani consumers who either lack access to banking services or prefer to pay in cash.

Furthermore, the complainants raise concerns over the lack of a return address or local customer care center, making it difficult for customers to return or exchange faulty or incorrect products. The absence of proper channels for redressal, they claim, violates basic consumer protection norms. Another central issue in the complaint is Temu’s pricing strategy, which the sellers describe as predatory. By offering goods at prices significantly lower than those of domestic competitors, Temu is allegedly distorting market competition and threatening the viability of small local businesses.

Lastly, the document calls attention to deceptive mobile app marketing practices, where customers are allegedly misled by discount-oriented mini-games that create a false sense of urgency or reward, pressuring them to download the Temu app under potentially false pretences.

The complainants have called on the Competition Commission of Pakistan to initiate an investigation and enforce compliance with relevant advertising, consumer protection, and competition regulations. They argue that immediate action is necessary to safeguard local commerce, uphold fair trade, and protect Pakistani consumers from exploitative digital retail practices.

As Pakistan’s e-commerce landscape continues to evolve rapidly, the complaint may serve as an indicator of the challenges posed by overseas e-commerce platforms. Its outcome could shape the standards for fair competition and consumer protection in the country and signal the readiness of regulatory institutions to address emerging pressures in a swiftly changing market.

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