Otto talks about 'systematic fraud' – Problems surrounding Chinese company TIMO –

Chinese shopping apps attract customers with huge discounts. The head of the Otto Austria Group explains what tricks this can be achieved. And criticized.

MUNICH – At the giant shopping store Timo, many products are much cheaper than in local stores. Provider Otto strongly criticizes the machinations of the Chinese competitor and accuses Timo of fraud.

Chinese shopping app Temu: Otto speaks of a “systematic fraud”

Timo has been criticized from many quarters for a long time. Competition now also speaks: “We are not afraid of competition, but the general conditions are unfair. What these providers are doing is systematic fraud,” said Harald Götsche, Chairman of the Auto Austria Group krone.at Quoted. As Gucci says, approximately 65 percent of packages coming from China are incorrectly declared. It is either worth more than stated or the order is packed in individual shipments so that no customs duties need to be paid.

As Gucci continues, the competition in its current form can no longer be maintained: “Multiple crises have hit retail like nothing in decades. Money on the stock exchange is missing,” he says. This is one of the reasons behind the decline in sales of the Otto Austria Group By 3.8 percent last year. Only from 2028 will action be taken against the machinations of Temu and other service providers, Jucchi criticizes, and between two and four billion packages will be sent to the EU every year by then.

The Consumer Advice Center is considering legal action against shopping giant Temu

The Chinese online retailer is also a thorn in the side of consumer advocates. The Consumer Advice Center is currently examining legal measures against Timo. The Federal Association of Consumer Organizations (vzbv) has already warned the company several times. As stated by Ramona Pope, president of vzbv, the platform will confuse its potential customers with random discounts and manipulative designs. The very young target group is particularly vulnerable to this.

A coordination process is currently underway at the Consumer Advice Center on whether a lawsuit should be filed against Timo. Above all, it is criticized that it is not clear to customers how high discounts come from. Temu has already responded to consumer advocates' claims. The company says it welcomes the opportunity to work with consumer groups: “We want to make sure our practices are fair.”rd/dpa)