China Watchdog Orders Temu-Owner PDD to Fix Refunds Policy
- Antitrust regulators summon executives to discuss the practice
- PDD’s grappling with backlash over no-questions-asked refunds
PDD and its Temu platform exploded on the scene in 2023.
Photographer: Lam Yik/BloombergChina’s top markets watchdog summoned PDD Holdings Inc. executives to order the company to fix its refunds-first policy, taking aim at a practice that a growing number of merchants argue hurts their bottom line.
The State Administration of Market Regulation and Ministry of Commerce told executives at a recent meeting that the policy — which lets shoppers claim refunds without returning purchased goods — placed an unfair burden on small merchants, people familiar with the matter said. Regulators asked PDD to fix the issue but stopped short of specific suggestions or outlawing the practice, the people said, asking not to be identified disclosing private talks.