LEILA FADEL, HOST:
Temu is the fastest-growing e-commerce platform in the U.S. In China, where it was founded, online merchants are protesting over what they say are arbitrary fines. NPR's Emily Feng has a report in which we want to note that there is a mention of suicide.
EMILY FENG, BYLINE: This week, vendors descended on the offices for Pinduoduo, the Chinese e-commerce giant that owns Temu.
(SOUNDBITE OF YELLING)
FENG: Temu has become one of the biggest Chinese e-commerce firms in terms of sales globally. According to the market intelligence firm Sensor Tower, Temu is now one of the most downloaded iPhone apps in the U.S., with around 50 million monthly active users.
UNIDENTIFIED MERCHANT: (Non-English language spoken).
FENG: Online merchants like this one, though, say they're not benefiting from Temu's success. They say Temu's cut-price business model has them losing money instead. And this week, they even occupied Temu office in the southern city of Guangzhou, demanding the company refund penalties they say were imposed arbitrarily.
DOUDING: (Non-English language spoken).
FENG: One of the vendors is Douding, who drove 20 hours to Guangzhou. He asked his full name not be used because he fears Pinduoduo could shut down his online store. Douding says he's been fined by Pinduoduo over the last year for some 800,000 renminbi, about $110,000, for what are called after-sale complaints on Temu.
DOUDING: (Non-English language spoken).
FENG: He says he has not had any explanation for what the complaints are for.
DOUDING: (Non-English language spoken).
FENG: And he says, unlike other e-commerce platforms, Temu does not always require customers to return goods if they complain.
DOUDING: (Non-English language spoken).
FENG: So now, not only has he made no money, he says. He also doesn't even have his goods back. In a statement, Temu said it was the merchants who declined to resolve the disputes through normal arbitration channels. It also said, quote, "penalties are necessary to maintain a high-quality marketplace" and it was, quote, "committed to fair enforcement and dispute resolution." The company acknowledged, quote, "some merchants may encounter challenges and said they were working with them.
Despite, or perhaps because of, its fast rise, Temu is no stranger to controversy. In the U.S., lawmakers have accused it of having no measures to ensure its goods are free from forced labor. And in China, its parent company has been accused of harassing former employees and creating a culture of overwork so extreme that employees have died of exhaustion and suicide. And yet, as Temu vendors protesting this week point out, Temu is now so big, they feel they have to open stores on the platform, no matter how inequitable they believe the company's conditions are.
Emily Feng, NPR News.
FADEL: If you or someone you know may be considering suicide or is in crisis, call or text 988 to reach the Suicide & Crisis Lifeline.
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