Temu’s Practices criticised in Pakistan over Unfair Tactics

Chinese e-commerce platform Temu is facing scrutiny from Pakistan’s Competition Commission over allegations of anti-competitive and misleading market practices.

The probe follows rising pressure from local businesses and trade bodies, particularly the Chainstore Association of Pakistan (CAP).

CAP claimed that Temu’s operations are harming Pakistan’s formal retail sector.

A written complaint accused the platform of deploying unfair pricing strategies and bypassing tax and import regulations, creating a skewed market landscape.

Temu entered Pakistan with a high-volume digital marketing push that promised heavy discounts and risk-free online shopping.

These ads quickly gained traction, attracting large numbers of buyers.

But local retailers say the platform’s methods undercut fair competition and violate regulatory norms.

CAP alleges that Temu ships products into Pakistan under the De Minimis exemption.

This customs clause allows low-value imports to enter without duties, meaning Temu avoids taxes and levies that Pakistani businesses are legally obligated to pay.

According to the complaint, such behaviour not only damages local sellers but also strips the market of regulatory oversight.

Furthermore, the platform offers no cash-on-delivery option and demands advance payments in foreign currency.

CAP warns that such practices can strain Pakistan’s current account and undermine financial controls.

Independent sellers have echoed these concerns through a separate complaint submitted via the Office of Fair Trade in Islamabad.

They argue that Temu’s pricing structure is “predatory”, accusing it of flooding the market with heavily discounted goods.

These prices, complainants say, are often below production cost and impossible for local sellers to match.

Industry insiders from the logistics and imports sector have raised further alarm.

According to them, Temu regularly under-declares product values, mislabels shipments, and splits high-value orders into smaller parcels to dodge taxation.

These actions not only violate customs law but also deprive the economy of critical revenue.

Despite mounting evidence, enforcement remains lax. Customs authorities have reportedly taken little action.

This has left domestic sellers frustrated, particularly because they face penalties for much smaller infractions while foreign platforms continue unchecked.

CAP has called for the Competition Commission to launch a formal inquiry and coordinate with other regulatory bodies.

This includes the Ministry of Commerce and the Federal Board of Revenue.

The association has also urged courier services to verify invoices and enforce declared product values accurately.

Without intervention, CAP warns, the continued operation of such unregulated foreign platforms may destabilise Pakistan’s formal economy and discourage entrepreneurship.