Merchants Protest High Penalties at Temu

Hundreds of merchants protested outside Temu's Guangzhou headquarters, expressing frustration over steep penalties imposed by the e-commerce platform's owner, PDD Holdings. These penalties, which can reach several times the sale value for issues like product returns and delivery delays, have left many small and medium-sized businesses on the brink of bankruptcy. The protests were sparked by a new penalty mechanism introduced in late July, which the company claims is necessary for maintaining marketplace quality. Merchants reported that withheld payments and fines totaled approximately 138 million yuan, severely impacting their operations. Despite merchants' claims, PDD suggested that the protests were led by a small group of 'troublemaking' vendors. As Temu seeks to expand globally, its aggressive revenue strategies are causing significant discontent among its suppliers.