CCP urges PTA to ban Temu, citing unfair competition and consumer harm

Concerns raised over Temu's predatory pricing and unregulated operations impacting local businesses and consumers

The Competition Commission of Pakistan (CCP) has formally requested the Pakistan Telecommunication Authority (PTA) to impose a ban on the Chinese e-commerce platform Temu, which has recently disrupted local markets, The Express Tribune reported.

In a letter to the PTA, the CCP explained that while it lacked the authority to enforce such a ban, it was urging the PTA to step in as Temu operates without registration in Pakistan. The CCP’s concerns focused on the platform’s impact on local commerce, including undermining consumer rights.

The letter, dated August 22, 2025, came after numerous complaints from industry stakeholders, including the Pakistan Retail Business Council and the Chainstore Association of Pakistan, who criticized Temu’s business practices. They alleged that the platform’s predatory pricing and manipulative marketing strategies are damaging to domestic retailers, particularly smaller businesses.

Temu, which entered Pakistan only a few months ago, has been accused of flooding digital platforms with aggressive advertising campaigns that include steep discounts and gamified promotions, which some critics argue manipulate consumer behavior. The platform’s pricing strategy, which offers goods at significantly lower rates than local markets, has also been seen as unfair competition, putting pressure on local businesses.

In addition to these concerns, independent sellers have raised issues about Temu’s lack of cash-on-delivery options, local return facilities, and the use of fake or recycled product reviews. These practices, they argue, leave Pakistani consumers exposed and unprotected when shopping online.

Pakistan is not alone in facing challenges with Temu. Countries like Indonesia and Vietnam have already moved to curb its operations, citing concerns about fair competition and consumer welfare.

Monitoring Desk
Monitoring Desk
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