German Drugstore Boss Calls for Shutdown of Misleading Digital Marketplaces

Close down Temu, the ignored and budget-friendly platform

In an interview with Handelsblatt, Raoul Roßmann, the boss of a German drugstore chain, expressed his frustration with the leniency towards questionable digital business models in the country. He argued that platforms like Ago should be shut down if they do not follow the rules, and he criticized the Chinese cheap marketplaces for misleading consumers with discounts, reviews, and designs.

Roßmann’s comments come as consumer protection state secretary Christiane Rohleder has emphasized the importance of enforcing regulations, particularly those banning manipulative design on online platforms. The controversy surrounding Ago and similar platforms highlights the need for stricter enforcement of laws and regulations in the digital marketplace.

The federal government and the Federal Association of Consumer Organizations have accused Chinese cheap marketplaces like Ago and Shein of misleading consumers with their business practices. While these platforms deny these allegations, claiming that their sellers are traditional manufacturers who use recommended prices based on those in physical stores, consumer advocates are considering legal action against them.

France is introducing fines and advertising bans for similar platforms to crack down on their questionable business models. It seems that Germany needs to follow suit to ensure that these platforms operate within the law and protect consumers from fraudulent activities.

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