Temu, a Chinese cross-border e-commerce platform, is under scrutiny by the Competition Commission of Pakistan (CCP) following complaints from domestic retailers and trade associations regarding its allegedly anti-competitive business conduct. The platform, which made an aggressive entry into the Pakistani market in recent months, has attracted regulatory attention due to its digital marketing push and pricing strategies that local businesses claim are distorting the retail landscape.
The Chainstore Association of Pakistan (CAP), representing independent sellers and retailers, formally approached CCP to express concerns about Temu’s unchecked operations. The complaint outlines that Temu, along with other similar foreign platforms, is bypassing regulatory frameworks by leveraging online-only operations, without establishing any legal or physical footprint within Pakistan. This allows them to benefit from loopholes such as the De Minimis exemption, which permits low-value imports without customs duties or taxes.
According to CAP, Temu’s business model involves deep discounts and promotional tactics that give the impression of risk-free purchasing. These methods have gained consumer interest rapidly, but have also placed significant pressure on local sellers who must comply with all taxation, customs, and quality assurance obligations. CAP argues this creates a structural imbalance, where unregulated foreign players enjoy cost advantages at the expense of compliant domestic businesses.
The association highlighted that Temu encourages consumers to pay in foreign currency before delivery, without offering local cash-on-delivery options. This raises concerns about potential effects on Pakistan’s current account balance. CAP has stressed that these payment mechanisms, coupled with underpriced goods, may not only harm consumer trust but also erode fiscal and regulatory discipline in the local economy.
In its appeal, CAP urged CCP to initiate a formal inquiry and coordinate with bodies such as the Ministry of Commerce, FBR, and SECP to ensure that foreign e-commerce operators are subject to the same legal framework as local businesses. The association also called on logistics and courier companies to only process shipments that have valid commercial invoices, accurate declarations, and verifiable tracking data submitted digitally to relevant authorities.
Additional grievances have emerged from independent sellers through the Office of Fair Trade in Islamabad, echoing claims that Temu is distorting the market and misleading consumers. One major concern revolves around Temu’s alleged use of predatory pricing to undermine local competition. Sellers assert that the platform offers goods at extremely low rates, in many cases below cost, making it difficult for compliant retailers to survive in a price-sensitive market.
Logistics industry insiders have further reported that Temu may be breaking up high-value orders into smaller parcels to remain under tax thresholds and avoid scrutiny. Mislabeling goods to evade customs duties has also been cited as a recurring issue. While enforcement against domestic businesses remains stringent, platforms like Temu are reportedly operating without substantial regulatory oversight, worsening the imbalance.
CAP has pledged full support to CCP in investigating these practices and reiterated the need for an equitable, rules-based marketplace where both local and foreign operators are held to the same standards. The issue brings to light the urgent requirement for regulatory alignment and stronger enforcement to protect Pakistan’s digital trade ecosystem and formal retail sector.
