Photo : YONHAP News
The state antitrust agency has completed an investigation into alleged false and exaggerated advertisement by online shopping platform Temu, operated by the Chinese e-commerce giant PDD Holdings, launching sanctions procedures.
According to industry sources on Monday, the Fair Trade Commission(FTC) sent a review report to Temu last Thursday, including an opinion on sanctions against the Chinese platform’s violation of the Fair Labeling and Advertising Act.
The FTC alleges that Temu deceived consumers by advertising to offer money returns, credit coupons or gifts without clearly explaining the conditions, such as inviting friends to app membership.
Last month, the antitrust agency had sent a similar review report to another Chinese platform AliExpress on suspicion of violating the same advertising law, while alleging both platforms had violated the Electronic Financial Transactions Act in July.
The FTC is expected to start sanctions procedures to determine enforcement and their scope.