Have you been deceived? NCC investigates Shein and Temu for possible CPA violations

The National Consumer Commission (NCC) has confirmed it is investigating whether Chinese e-commerce giants Shein and Temu are contravening the Consumer Protection Act (CPA). NCC’s spokesperson Phetho Ntaba toldThe Citizenthey are looking to conclude the investigation by the end of the fourth quarter. The NCC is a government body that protects consumers by ensuring fair business practices, as outlined in the CPA.

The Act was established to protect consumers from misleading business practices. “We intend to finalise the investigation by the end of Q4, depending on whether the investigation does not require more time,” said Ntaba. She added that they initiated the investigation after picking up concerns online regarding possible violations of the CPA.

While the NCC did not give a detailed explanation of how the two Chinese e-commerce giants might have violated the Act, there are several ways a business can do this. This includes advertising goods or services with false, misleading, or deceptive representations about their nature, properties, advantages, or uses. The other ways businesses can violate the Act are by advertising goods at a specified price or under terms that are not actually available, with the intent of luring consumers to the store to sell them something else. Ntaba said they do not start an investigation with the end in mind when asked what penalties the Chinese e-commerce giants could face.