Temu under scrutiny as minister promises closer oversight of e-commerce giants
The Minister of Trade, Industry, and Competition, Park Tau, has revealed that the government is keeping an eye on Chinese online retailer Temu
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Minister of Trade, Industry, and Competition, Park Tau, has revealed that the government is keeping an eye on Chinese online retailer Temu and its claims of having local warehouses in South Africa.
The minister made this statement in a parliamentary reply to questions posed by EFF MP Sinawo Tambo, who raised concerns about Temu’s marketing practices and their effect on South Africa’s retail sector.
"The department has noted media reports that Temu has launched its “local warehouse” and the National Consumer Commission (NCC) shall be monitoring these developments and their impact on the domestic retail sector," Tau said.
"The operations of Temu in the country have to comply with all relevant legislation, including the Consumer Protection Act, Act 68 of 2008 (CPA)".
The minister added that e-commerce giant "like any other company selling goods into the South African market directly to consumers, has to adopt advertising and marketing strategies that comply with the CPA and broader fair-trading laws of the Republic".
"The National Consumer Commission (NCC) in its 2025-2030 strategy has aptly prioritised e-commerce trade to ensure a fair and competitive marketplace that not only benefits consumers, but also promotes domestic production. The NCC will, in the 2025/2026 financial year, conduct a detailed internal scoping of the e-commerce market in South Africa to identify if there are areas that require investigation in terms of the CPA".
He also revealed that "while no formal complaints have been initiated or received against Temu, the NCC has noted concerns raised in other jurisdictions around issues of deceptive practices, quality and safety of products".
"These are some of the practices that the scoping of the e-commerce market seeks to understand, and to particularly assess if South African consumers are affected. The NCC, after gathering data, will determine if there is a reasonable suspicion to proactively initiate an investigation".
IOL previously reported that, as South Africa continues to battle the scourge of unemployment, a new report by the Localisation Support Fund (LSF) has found that fast-growing Chinese online retailers Shein and Temu may have cost the country more than 8,000 potential jobs over the past five years.
"In 2024, Shein and Temu collectively achieved approximately R7.3 billion in sales, accounting for 3.6% of the total R-CTFL market and 37% of the sector’s e-commerce sales," the report noted.
"This rapid growth has come at a notable cost to the local economy. The estimated displacement is estimated to include R960 million in lost local manufacturing sales, 2,818 associated manufacturing jobs that may have materialised, and 5,282 unmaterialised retail jobs from 2020 to 2024".
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