JOHANNESBURG, South Africa – The South African government Department of Trade, Industry and Competition (DTIC) and the National Consumer Commission (NCC) have issued a stern warning to foreign online retailers such as Temu, urging them to comply fully with South African laws or risk facing enforcement action.
According to BusinessTech, the warning follows questions raised in Parliament over Temu’s claims that it operates “local warehouses” in South Africa. The Minister of Trade, Industry and Competition confirmed that the department is aware of these claims and that the NCC is closely monitoring the company’s activities.
Temu, a fast-growing Chinese e-commerce platform that ships products directly from China, announced in July that it had launched a “local warehouse” in South Africa to enable faster deliveries—sometimes in less than two days. Items marked “local” or “local warehouse” were said to be stocked within the country.
However, Temu has since clarified that it does not operate any warehouses directly. Instead, it partners with third-party logistics companies to store and deliver goods locally. “Under the local fulfilment model, sellers store inventory in local warehouses, manage logistics, and provide after-sales support,” the company explained.
The NCC has taken note of the platform’s marketing claims and confirmed it will continue monitoring Temu’s operations and their potential impact on South Africa’s retail industry.
“The operations of Temu in the country have to comply with all relevant legislation, including the Consumer Protection Act,” said the Minister. He added that any company selling to South Africans must ensure that its advertising is truthful and not misleading.
The NCC has identified e-commerce regulation as a key priority in its 2025–2030 strategy. As part of this, it plans to conduct a comprehensive review of the online shopping sector during the 2025/2026 financial year to identify potential risks to consumers and fair competition.
Although there have been no official complaints against Temu in South Africa so far, the NCC is aware of consumer concerns in other markets about misleading advertising, poor product quality, and unsafe goods. “These are some of the practices that the scoping of the e-commerce market seeks to understand, and to particularly assess if South African consumers are affected,” the Minister said.
The DTIC is also developing broader regulatory reforms aimed at modernising the Consumer Protection Act (CPA) and Competition Act to better address digital and cross-border commerce. “The department is considering measures to strengthen and align the CPA with the e-commerce ecosystem,” he added.
A recent report by the Localisation Support Fund found that Chinese retailers such as Temu and Shein have already had a significant impact on South Africa’s clothing and textile sector, contributing to the loss of an estimated 8,000 local jobs.
Despite this, experts say the platforms remain popular among South African consumers. Takealot continues to dominate the local market with about 32% of online shoppers, while Temu and Shein have gained a combined 15% of the market in 2024.
E-commerce expert Andy Higgins, founder and CEO of Bob Group, said that although recent import duties have narrowed the price advantage of Chinese platforms, they remain competitive. “The recent SARS changes have narrowed the gap, but even with import duties, many Chinese platforms still offer strong value compared to local retailers,” Higgins said.
He added that while the new duties have slowed growth slightly, Temu and Shein’s scale and low pricing will continue to attract cost-conscious South African shoppers. “These platforms are here to stay, albeit in a more competitive and regulated environment,” he said.
