Personal online purchases through platforms such as Amazon, Shein, or Temu in Ecuador will be subject to a 20 % tax starting June 16, according to the Ministry of Production and Foreign Trade.

The local government has reported that the tariff directly affects all imports under the Courier 4×4 (Category B) regime. It clarified that the annual limit of $1,600 per user remains in place.

With this measure, the Ecuadorian government seeks to “prevent informal commercial use of the 4×4 system, designed for personal purchases from abroad.”

Local sources have reported significant growth in online commerce over the past four years, with a 392 % increase in value (from $102.7 million to $502 million in 2024) and a 637 % increase in the number of packages (from 879,000 to 6.5 million).

The measure is expected to contribute to other executive branch initiatives aimed at protecting domestic production and employment from unfair competition from foreign platforms such as Temu or Shein, which directly affect the footwear and textile sector in the South American country.

M.Pino

Source: elnacional

(Reference image source: Shutter Speed on Unsplash)

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The European Commission is investigating the Chinese online retail platform Shein for alleged violations of consumer protection regulations, unfair commercial practices, and distorted promotions.

This decision results from “an investigation, led by the authorities of Belgium, France, Ireland, and the Netherlands, and carried out together with the Consumer Protection Cooperation Network (CPC)” that exposes “tactics that, according to Brussels, distort users’ purchasing decisions and violate key directives such as the Unfair Commercial Practices Directive and the Consumer Rights Directive.”

The accusations against Shein include false promotions, misleading information, pressure tactics (urgent messages and countdown clocks for sales), a lack of clear channels for consumer contact, confusing labeling, and “greenwashing”, as the company is not supported by verifiable data or certifications.

The EC has given Shein a one-month deadline to present its arguments and corrective commitments. If the Commission finds the arguments unsatisfactory, “national authorities could initiate enforcement actions that include fines proportional to the company’s turnover in each country affected.”

M.Pino

Source: marketing4ecommerce

(Reference image: appshunter.io on Unsplash)

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La entrada Shein under investigation by the European Commission for unfair commercial practices apareció primero en Bitfinance.

The rapid increase in the presence in Latin America of Chinese online stores with merchandise at very low prices keeps governments on alert, which are studying measures to protect retailers due to possible unfair competition.

The very low prices of Chinese chains such as AliExpress or Shein cause a sensation among young people, who prolong their browsing on these platforms, attracted by new products and super-cheap packages.

The data company Statista reported data from 2022, where “online commerce moved 122,000 million dollars in Latin America and could reach 200,000 million by 2026.”

AliExpress, Shein and Temu are at the top of the list of Chinese online companies with wide influence in the region. Their offers consist of “products at very low prices after direct purchase from suppliers and agreements with logistics companies.”

As a protection measure against the daily flow of packages in customs, countries such as Chile and Brazil decided to eliminate “tax exemptions for purchases from abroad under 41 and 50 dollars, respectively.” On the other hand, Mexico decided to apply controls on this commercial activity to strengthen trade.

In addition to the investigations into some Chinese online store chains for possible unfair competition in Latin America, last October the European Union announced an investigation into the Temu firm “for alleged sale of illicit products through these platforms.”

Another risk for the consumer is the possible addiction to online shopping, since customers spend hours scrutinizing offers, new packages and extraordinary discounts instead of investing that time in sharing with family or resting.

There are other aspects related to fashion, such as the exploitation of specific ethnic groups in factories around the world, as well as the increase in polluting emissions that contribute to the greenhouse effect, in addition to the increase in wastewater.

M.Pino

Source: forbes.com.mx

(Reference image source: CardMapr.nl in Unsplash)

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La entrada Low-cost Chinese online stores cause alarm in Latin America apareció primero en Bitfinance.