"Scrap commerce"

Temu and Shein: warning about cheap goods from China

(Bild: AFP)

A dirndl for eleven euros, wireless earphones for four euros or a motorcycle helmet for 28 euros - the offers on Chinese online stores such as Temu or Shein are attracting more and more young buyers. In Germany alone, there is talk of 400,000 packages a day. But warnings are also piling up, ranging from a lack of product liability and harmful substances to the circumvention of consumer rights and customs regulations. The environment also suffers from the many disposable items.

"We stand for fair commerce instead of scrap commerce," says Rainer Will, Managing Director of the Austrian Retail Association, using drastic words to describe the new competition from the internet. He is not alone in his warning. The Chamber of Commerce also warns. The state would lose billions due to loopholes in the customs authorities in Europe. The products often reach Austria duty-free and tax-free.

(Bild: AFP)

Massive problems with exchanges and returns
The Association for Consumer Information (VKI) urges caution. "The problems with such dropshipping companies often only arise when you want to return the goods," said Jakob Zarari from the European Consumer Center (ECC), which is based at the VKI. Recently, there have been complaints, for example because ordered items of clothing looked different from the product photos, were too small or stank.

Temu lures consumers with cheap goods that often do not deliver what is promised in the store.

(Bild: AP)

Zarari explained that consumers in the EU have the right to withdraw from the purchase within 14 calendar days of receiving the ordered goods without giving a reason. However, Zarari pointed out that it would be difficult to withdraw if the return address was in China. Although Temu and Shein offer payment on account, the intermediary payment service provider Klarna insists on payment even if you have not received the product or want to return it, says Zarari.

Cheap Chinese goods from other online shops too
The consumer advocate advises checking who you are really buying from and who is just an intermediary before making a purchase. Cheap Chinese goods without approval in Europe or without CE marking are not only available on Temu or Shein, but also on Amazon. There are a large number of products on Amazon's Marketplace where Amazon only handles the shipping but is not the seller. This can be recognized by cryptic names such as "JHSDZUK" or "ZUNTO". If you click on the name and scroll down, you will find the seller's legal notice including the business address.

Harmful substances, safety defects
It becomes dangerous when products are purchased that have safety defects, such as harmful substances in children's toys or when a charger causes a fire. In such cases, product liability applies, explains Zarari. This is directed against the manufacturer or importer. In the case of direct purchases from China, however, there is no importer and the manufacturer, who is based in China, will be difficult to prosecute from Austria, says Zarari. He points to EU plans to hold intermediaries accountable.

In China's clothing factories, people work for low wages under some of the most adverse conditions.

(Bild: AFP)

In principle, products that are imported into the EU are also checked by customs. They work with risk analyses and "a sophisticated combination of people, service dogs and technology", explained the Ministry of Finance when asked. Details would not be given "because this would run counter to an effective fight against fraud". Checks are carried out for bans and restrictions for the protection and safety of citizens, the environment and society.

270,000 consignments from China
Consignments of goods from China or other third countries can be processed in any EU member state. It is up to the online platform or the importer to decide where to carry out the necessary procedures, explained the Ministry of Finance. In Austria, a total of around 1.7 million consignments with a value of up to EUR 150 were handled by courier services and Austrian Post in the e-commerce sector in 2023. Around 270,000 of these shipments were sent to China.

Disposable fashion from the plastic bag

(Bild: AFP)

Toys as a health hazard
European toy manufacturers recently warned of a safety risk for children. According to the Toys Industries of Europe (TIE) association, 19 toys had been purchased via Temu. None of them complied with the applicable regulations for toys in the EU and 18 did not meet the toy standards of the EN 71 series. For example, the content of the semi-metal boron in one slime toy was eleven times higher than the legal limit for toys. In the case of other toys, there was a risk that children could choke on small parts or injure themselves. A Temu spokeswoman said that an internal investigation was launched immediately after the test results were received. All 19 products had been removed and were no longer available on the EU website.

The Chamber of Commerce is calling for an increase in customs staff across Europe. According to the WKÖ, this cannot work if a small number of employees have to check over a million parcels every day. The chamber and the trade association are calling for the end of the 150-euro customs exemption limit planned for 2028 to be brought forward. Head of the trade association Will sees this as the "most important measure", saying that the duty-free limit must be abolished by 2026 at the latest. "It's high time we woke up," says Will.