Due to numerous complaints about misleading and aggressive sales practices, SECO was forced to take regulatory action against the online platform Temu. In an exemplary procedure, the Swiss competition authority prevailed against the internationally active provider and forced significant changes. The Temu case thus symbolises the increasing enforcement of national consumer protection standards against global platforms – and sets an important precedent for Swiss online retail.
The Temu case as a wake-up call for Swiss e-commerce
In 2024, the State Secretariat for Economic Affairs (SECO) received numerous complaints from consumer and retailer associations. The target of the criticism was the Chinese online platform Temu. The allegations included misleading price information, manipulative sales tactics and aggressive marketing emails. After intensive discussions with the Irish-based operator Whaleco Technology Limited, SECO succeeded in getting Temu to make extensive changes at the beginning of April 2025.
Legal framework: Fair trading law and international jurisdiction
The Federal Act against Unfair Competition (UCA) protects consumers from misleading and aggressive business practices. According to Art. 3 para. 1 lit. b UCA, it is prohibited to deceptively influence the market behaviour of consumers through incorrect or misleading information about prices or price advantages. Internationally active companies such as Temu, which explicitly target Swiss customers, are also subject to these regulations. SECO is authorised to intervene in the event of detected violations – also preventively and in cooperation with foreign providers.
Analysis of the implemented changes
The changes initiated by SECO on the Temu platform affect key elements of online marketing and consumer information. They are designed in detail to prevent manipulative practices and significantly improve transparency for consumers. In detail, the following measures have been implemented:
- Transparent price information: Previously, a crossed-out reference price was often indicated, which was not clearly comprehensible. In future, the comparative price indicated must correspond to the most recent product price on the platform immediately before the price reduction. This prevents artificially inflated discounts and deceptive price comparisons. The Price Disclosure Ordinance recognises 2 variants of self-comparison: the price valid immediately before the reduction may be referenced, or a price from a longer period in the past if it was actually charged within 30 days. The e-commerce giant Temu has now been blocked from using the second option for self-comparison.
- Disclosure of seller information: Users are now given access to full information about the respective sellers (name, address, email). This is particularly important in the event of problems or returns and promotes the traceability of transactions.
- Removal of manipulative design elements: Interactive elements such as the so-called “wheel of fortune”, which was intended to trigger emotional impulse purchases, have been removed. Psychologically effective messages such as “Only a few items left!” or “Over 100 people have this item in their shopping basket” have also been revised or removed.
- New standards for stock displays: The “Almost sold out” display may now only be used if the stock level is actually low (between 99 and 20 pieces). An automatic control mechanism has been introduced to ensure the correct application of this rule.
- Revision of marketing emails: In the past, dramatically worded emails with statements such as “We regret to inform you…” or “You must act now!” were particularly noticeable. These were deleted or toned down so as not to put consumers under emotional or time pressure.
These changes make a significant contribution to fair competition in online retail. They strengthen consumer confidence and show that regulatory intervention can also have an impact on globally operating platforms. Whaleco has committed to maintaining the changes in the long term. SECO is currently refraining from taking legal action, but has announced that it will take action again in the event of further complaints.
Classification and history of the Temu case
The Swiss Retail Federation submitted a formal complaint to SECO back in May 2024. This was based on extensive criticism from consumer and retailer associations, which included misleading pricing practices, emotional sales incentives and a lack of transparency in product information. As a result, SECO invited representatives of Temu – more precisely the Irish company Whaleco Technology Limited – to its premises in Bern in September 2024. This step was of particular importance as it made it clear that international online platforms with a Swiss connection also fall within the remit of the domestic competition authority. In these discussions, Temu was presented with the key requirements of Swiss unfair competition law and a catalogue of necessary adjustments was discussed. As an initial reaction, Temu amended its General Terms and Conditions to reflect Swiss legal standards. These early measures paved the way for the changes implemented in April 2025.
The Swiss supervisory authorities are thus following suit in the European context, as transparency obligations in online trading are also being increasingly enforced in the European Union. The Omnibus Directive (EU) 2019/2161 introduced new requirements, particularly for price reductions: Suppliers must state the lowest price of the last 30 days and thus clearly communicate how the price has developed.
Why Temu has repeatedly attracted negative attention in Switzerland
Temu has been criticised several times in the past. The platform fell through:
- Massive advertising with supposed discounts that turned out to be misleading on closer inspection.
- Sales tactics that created time pressure, such as countdown timers and references to items that were supposedly almost sold out.
- Insufficient information about the suppliers behind the products, which led to a lack of transparency.
- Marketing emails with manipulative wording that created an impression of urgency.
These practices led to a loss of trust among Swiss consumers and attracted the attention of the competition authorities.
Practical implications and recommendations
For companies in the Swiss e-commerce sector, this case means that
- Fair trading law applies across borders: International platforms must also comply with Swiss standards.
- Transparency instead of deception: Complete information promotes trust.
- Reputable marketing: Pressure building through design elements or choice of words can harbour legal risks.
For consumers, this means better protection against misleading advertising and manipulative sales practices.
What companies can learn from the Temu case
- Document price details and present them in a comprehensible manner
- Provide seller information clearly and transparently
- Check design elements: No artificial scarcity or pressure build-up
- Formulate marketing emails neutrally and objectively
- Regularly adapt general terms and conditions to national legal requirements
Conclusion and outlook
The Temu case is an example of how national authorities can also ensure fairness in global e-commerce. For international providers, this sends a clear message: anyone operating in Switzerland must comply with Swiss law.
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