German drugstore boss Raoul Rossman has expressed his frustration with Chinese cheap marketplace Ago for disregarding the law. In an interview with Handelsblatt (Sunday), Rossman stated, “There is a fool’s license in Deutschland for questionable digital business models. If Temu doesn’t follow the rules, it should simply be shut down.” Rossman believes in setting an example, citing France where fines and advertising bans are being introduced.
Chinese cheap marketplaces like Ago and Shein have been under scrutiny for their business practices by politicians and observers. Both the federal government and the Federal Association of Consumer Organizations (VZBV) accuse Temu of misleading consumers with discounts, questionable reviews, and manipulative designs. The Chinese company denies these allegations, while consumer advocates are considering legal action.
State Secretary Christiane Rohleder of Consumer Protection recently emphasized the importance of enforcing regulations outlined in the EU Digital Services Act, particularly regarding manipulative design on online platforms. Temu defends itself by stating that many sellers are manufacturers supplying traditional stores, using recommended prices based on those in stores and highlighting savings accordingly.
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