A South Korean anti-trust regulator is investigating popular Chinese e-commerce app Temu for false advertisements and dishonest business practices on Monday, April 8th.
The Fair Trade Commission (FTC) sent paperwork to Temu to determine if it broke South Korean e-commerce acts and advertising regulations for promoting misleading advertisements, according to government officials.
Whaleco Korea LLC, Temu’s auxiliary, has yet to begin full operations. Temu entered the South Korean market last July.
The officials are also looking at claims by consumers of poor-quality products and a lack of care in the delivery of packages.
Temu also faces scrutiny over multi-level marketing tactics to gain additional customers as well as cash coupons.
Government officials are also raising questions about collecting users’ data and how well the acquired data is protected.
