Protests Erupt Among Temu Sellers Over High Fines and Frozen Funds

Temu, an online marketplace known for offering discounted products from self-employed sellers, is facing backlash from its vendor community. Over 100,000 sellers, primarily from China, utilize the platform, but recent protests have highlighted growing frustrations regarding the company's policies. Demonstrators gathered in Guangzhou, demanding the release of funds and expressing dissatisfaction with what they describe as "disproportionately high" fines imposed for poor customer service. Two anonymous suppliers shared their grievances with CNN, revealing that Temu had frozen approximately two million yuan (around $276,000) in completed sales, which they needed to cover operational costs and salaries. The atmosphere during the protest was described as loud yet peaceful, with sellers voicing their concerns about the financial strain caused by the platform's practices. One seller lamented the potential loss of her family and business due to these issues. In response to the protests, a Temu spokesperson downplayed the scale of the demonstration, claiming that only a small group of sellers participated. The spokesperson assured that the company is actively engaging with merchants to address their concerns. Despite the unrest, Temu's growth trajectory remains strong, with over 600 million app downloads and projections from Goldman Sachs estimating a gross merchandise value of $45 billion in 2024. Sellers have expressed their frustration over a lack of transparency and communication from Temu, with many stating that the hefty fines make it nearly impossible to achieve profitability on the platform.