This, a increasing e-commerce platform, sparked controversy after the introduction of fresh rules of penalties for product quality problems. Since his debut in September 2022, This has gained popularity around the world, but the company's fresh decisions to impose gigantic penalties on retailers have sparked serious controversy. Hundreds of Chinese retailers have gone out on the streets protesting practices that they think are disproportionate and leading to the bankruptcy of many tiny companies.
The emergence of Punishments and Their Effects on Vendors
New Rules of Penalties
Since April 2024, This has been introduced by fresh rules that supply for fines of up to 5 times the value of the products sold in the event of refunds. This introduction has sparked a wave of discontent among retailers who claim that penalties are not only besides advanced but besides unjustified.
Example: 1 of the salesmen from Guangzhou, specializing in clothing, reported that Temu imposed a punishment on him of 290 1000 yuan (about 160 1000 zł) for products sold after 20-30 yuan (11-16 zł) per piece. This level of punishment is impossible for many sellers to bear financially.
Protests Before the Head Office
Protest Scale
On July 29, 2024, 400 to 500 sellers gathered in front of the seat of this Ten, who protested against the fresh regulations. The main allegations concern disproportionate penalties and the deficiency of effective redress mechanisms. Vendors accuse the company that penalties are imposed without adequate explanation and that there are no adequate channels of dispute resolution.
Temu reaction
This, in consequence to the protests, stated that most of the protesters were clothing sellers besides operating on another platforms specified as Shein. The company stressed that penalties are essential to keep a advanced quality market. "The penalties are essential to guarantee advanced quality products on our platform. We work with the sellers to find solutions and to enforce our rules fairly," she informed him in a statement.
What are the reasons for introducing penalties?
Maintenance of marketplace Quality
He explains that penalties are intended to keep advanced quality products offered on the platform and to destruct fraud and irregularities. Problems specified as abnormal clothing sizes that affect client satisfaction are 1 of the main reasons for introducing stricter rules.
Impact on Vendors
For many tiny retailers who operate on smaller margins, specified penalties can be devastating. Bankruptcy and closures are already observed among those who are incapable to meet fresh financial requirements. In utmost cases, as indicated above, the penalties imposed are a multiple of the revenues generated by the seller, making them unreachable.
What should you know as a salesman?
How to Prepare for Control
- Documentation: Make certain you have complete documentation on the quality and conformity of your products.
- Follow the guidelines: Strictly follow the Quality and Product Standards Guidelines.
- Follow Changes: Keep up-to-date with any changes in penalties and reporting procedures.
What if you get the punishment?
- Problem documentation: Collect any evidence and documentation regarding the problem that caused the imposition of the penalty.
- Complaint: usage available appeal and complaint mechanisms to rise your concerns.
- Search for Help: Consult a lawyer specialising in commercial law to get professional assistance on possible disputes.
The Future of This and Relations with Vendors
Need Reforms?
It is possible that in the future, Temu will gotta adapt his approach to imposing penalties, given the increasing discontent among sellers. Reforms may be needed to guarantee fairer and transparent enforcement mechanisms to keep healthy relations with trading partners and prevent bankruptcy.
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Controversial Punishments of This: Vendors Protest
