German politician Raul Rossman believes that Chinese flea market Ago deserves a stricter punishment for non-compliance with the law. According to Rossmann, Germany has given companies like Temu a “fool’s license” for questionable digital business models, but if they don’t follow the rules, they should be shut down entirely. Rossmann is adamant about setting an example and points to France as evidence of this approach, where fines and advertising bans are being introduced.
The controversy surrounding Chinese flea markets such as Ago and Shein has been mounting in recent years, with both the federal government and the Federal Association of Consumer Organizations (VZBV) accusing Tema of misleading consumers with discounts, biased reviews and manipulative designs. While Tema denies these allegations, consumer advocates are considering legal action.
Recently, Secretary of State for Consumer Protection Christian Rolleder emphasized the importance of enforcing regulations set out in the EU Digital Services Act, particularly with regards to manipulative designs on online platforms. Rolleder argues that many retailers are manufacturers who supply traditional stores, using suggested retail prices based on those in physical stores and highlighting savings accordingly.
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