Temu Suspension: What Customers Need to Know

Vietnam’s Ministry of Industry and Trade has ordered the e-commerce platform Temu to halt its operations due to incomplete registration paperwork. Customers with pending orders are urged to take two important steps to protect their purchases.

Concerns are rising among Temu customers in Vietnam, particularly since the site’s local version is currently unavailable. Many have reported orders placed as early as November that have yet to arrive.

Duy Khanh, a resident of Hanoi, recounted his experience: he spent VND 200,000 on defective items in October and pursued a refund. Temu allows refunds either to the original payment method or as credit to a Temu account. Opting for the latter to use for future purchases, Khanh faced a setback when Temu raised the minimum order requirement to VND 887,000 in November, making his account balance unusable for new purchases.

“My Temu balance is still out of reach. After learning about the service suspension, I contacted customer support but received no reply,” Khanh shared.

On December 4, Hoang Ninh, the Deputy Director of the E-commerce and Digital Economy Department, reported that Temu had begun its registration process, but it was incomplete. The Ministry had warned that without finalizing registration by November 30, Temu must cease operations. Following this, they directed Temu to suspend its services until registration is confirmed.

Regarding the raised minimum order value, Ninh mentioned it reflects a business tactic, likely a result of significant costs from initial promotions and shipping offers in Vietnam. He also indicated that issues with customs regulations might hinder deliveries from non-compliant e-commerce platforms.

Ninh recommended that customers awaiting their orders consider two approaches: they could wait for Temu to resolve its registration to potentially receive their orders or request refunds for items not delivered on time.

He added, “I’ve personally used Temu and have received refunds for delays. On one occasion, I was allowed to keep an item free when it did arrive late.”

Nguyen Binh Minh, a member of the Vietnam E-commerce Association (VECOM), suggested two initial actions for customers affected by this situation: contact Temu to check on order statuses as customs might be causing delays, or cancel their order and seek a refund if there are no updates on delivery.

He cautioned consumers to avoid unlicensed e-commerce platforms to reduce risks and advised heightened vigilance when participating in cross-border online shopping.

The Ministry of Industry and Trade has previously highlighted the risks associated with shopping on unregistered cross-border e-commerce platforms:

• Lack of Regulation: These platforms are not subject to oversight, increasing the risk of receiving poor-quality goods or inadequate customer service.
• Challenges in Dispute Resolution: Obtaining refunds or returns for defective or incorrectly described products can be difficult and lengthy.
• Risk of Counterfeit Goods: Consumers may inadvertently purchase fake items without assurance of quality or origin.
• Data Security Risks: Cross-border transactions involve sensitive payment information, which may be vulnerable without adherence to local data protection laws.
• Hidden Costs: Buyers might encounter unexpected fees or taxes that were not revealed during the purchasing process.