CCP seeks ban on Temu e-commerce platform

Says disruptive practices hurting local commerce, consumer rights

ISLAMABAD:

The Competition Commission of Pakistan (CCP) has asked the Pakistan Telecommunication Authority (PTA) to slap a ban on Chinese e-commerce platform Temu.

According to a letter, a copy of which is available with The Express Tribune, the CCP said it lacked the authority to impose the ban as Temu was not registered in Pakistan, therefore, the PTA should look into the matter.

The CCP highlighted its concerns about Temu's disruptive presence in Pakistan by referring the matter to the PTA. In its official notice dated August 22, 2025, the CCP acknowledged industry complaints that Temu's practices were damaging local commerce and undermining consumer rights, while clarifying that only the PTA held the authority to restrict or ban apps under the existing laws.

In their formal complaints, the Pakistan Retail Business Council and the Chainstore Association of Pakistan argued that Temu's business model relies on predatory pricing and manipulative marketing, creating conditions that are unsustainable for domestic retailers.

By offering goods far below local market prices, Temu has been accused of distorting competition and squeezing out smaller businesses that form the backbone of Pakistan's retail sector.

Temu, which entered Pakistan just a few months ago, has flooded digital platforms with aggressive advertising, luring customers through steep discounts and gamified promotions that critics say cross the line by manipulating consumers.

Independent sellers have already lodged complaints citing practices such as fake or recycled product reviews, absence of cash-on-delivery option and the lack of local return facilities, all of which leave Pakistani shoppers exposed and unprotected.

Consumer rights advocates warn that Temu's model not only erodes trust in online commerce but also exploits regulatory loopholes — operating in Pakistan without the same accountability faced by domestic e-commerce players. This two-tiered problem of foreign players operating unchecked while local sellers face compliance obligations is being described by stakeholders as regulatory oversight at the expense of Pakistan's economy.

Pakistan is not alone in encountering this challenge. Countries such as Indonesia and Vietnam have already moved to curb Temu's operations, citing risks to fair competition and consumer welfare.