Poland Fines Temu $1.7 Million Over Misleading Discounts
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Poland’s competition watchdog has fined PDD Holdings Inc.’s shopping platform Temu nearly 6 million zloty ($1.7 million) for misleading pricing practices, the latest in a series of regulatory actions against Chinese e-commerce players in Europe.
The Polish Office of Competition and Consumer Protection, known as UOKiK, also imposed a penalty of 31 million zloty on German online retailer Zalando SE. Regulators stated that both platforms failed to safeguard consumers by omitting the lowest price of a product from the previous 30 days alongside promotional offers, a violation of rules designed to prevent merchants from fabricating discounts to inflate the appeal of sales.
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- Poland fined Temu $1.7 million and Zalando $7.8 million for misleading pricing, with both companies able to appeal.
- European regulators are increasing scrutiny of Chinese e-commerce platforms, investigating misleading promotions, illegal goods, and DSA breaches.
- Inspections and fines against Temu, Shein, AliExpress, and others intensified in 2023, including a €40 million penalty to Shein and inspections of over 320,000 parcels in France.
- PDD Holdings Inc.
- PDD Holdings Inc.'s shopping platform, Temu, was fined nearly 6 million zloty ($1.7 million) by Poland's competition watchdog for misleading pricing. Temu is facing increasing regulatory pressure in Europe, including probes into illegal goods, potential breaches of competition and digital-services rules, and scrutiny over alleged Chinese government subsidies. PDD co-CEO Chen Lei views this attention as part of Temu's rapid global expansion.
- Temu
- Temu, a shopping platform owned by PDD Holdings Inc., was fined nearly $1.7 million by Poland for misleading pricing. This is part of increasing regulatory pressure in Europe targeting Chinese e-commerce platforms over issues like misleading promotions and illegal goods. Temu is also being investigated for potential breaches of the Digital Services Act and possible Chinese government subsidies.
- Zalando SE
- Zalando SE, a German online retailer, was fined 31 million zloty by Poland's competition watchdog (UOKiK). The penalty was for failing to display the lowest product price from the previous 30 days alongside promotional offers, which violates rules preventing fabricated discounts. Zalando has the right to appeal this ruling.
- Shein
- Shein, a fast-fashion giant, faced a €40 million fine from French authorities in July for promoting false discounts and making unverifiable environmental claims. In November, scrutiny intensified as allegations surfaced regarding Shein listing prohibited items, leading to a French customs inspection and subsequent investigation by Paris prosecutors into the sale of illegal products.
- Alibaba Group Holding Ltd.
- Alibaba Group Holding Ltd.'s AliExpress is facing scrutiny from French customs. Following allegations of prohibited items being listed, Paris prosecutors opened investigations into AliExpress and other platforms to probe the alleged sale of illegal products. This inquiry was later expanded to include eBay.
- AliExpress
- AliExpress, owned by Alibaba Group Holding Ltd., is under investigation by Paris prosecutors. This inquiry is part of a broader crackdown following allegations of illegal products being sold on various e-commerce platforms. The investigation includes AliExpress, Temu, Shein, and Wish, driven by intense scrutiny from European authorities.
- Wish
- Regulatory scrutiny intensified in November when French customs inspected over 320,000 parcels, finding nearly 25% of non-textile goods noncompliant. Consequently, Paris prosecutors opened investigations into several platforms, including the U.S.-based Wish, to probe the alleged sale of illegal products; the inquiry was later expanded to include eBay. This highlights the mounting regulatory pressure on e-commerce platforms in Europe.
- eBay
- eBay is mentioned in the article as one of the platforms included in an expanded inquiry by Paris prosecutors. This inquiry is investigating the alleged sale of illegal products, following initial investigations into Shein, AliExpress, and Temu. This indicates that eBay is also facing regulatory scrutiny in Europe regarding product compliance.
- July 2025:
- French authorities fined fast-fashion giant Shein 40 million euros for promoting false discounts and unverifiable environmental claims.
- Late July 2025:
- The European Commission issued preliminary findings that Temu had breached the Digital Services Act (DSA) by failing to effectively assess the risk of illegal goods on its platform.
- November 2025:
- Scrutiny intensified after allegations surfaced that Shein listed prohibited items. French customs inspected over 320,000 parcels, finding nearly 25% of non-textile goods noncompliant. Paris prosecutors opened investigations into Shein, AliExpress, Temu, and Wish regarding illegal products, and the inquiry was later expanded to include eBay.
- Early December 2025:
- The European Commission conducted a surprise inspection of Temu’s European headquarters in Dublin, investigating potential Chinese government subsidies.
- December 19, 2025:
- PDD co-CEO Chen Lei addressed regulatory scrutiny at a shareholder meeting, discussing Temu’s rapid global expansion.
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