Chinese online marketplaces and other non-EU platforms are putting Czech retailers at a disadvantage through unfair practices, according to Tomáš Prouza, president of the Czech Union of Commerce and Tourism (SOCR). Speaking at a press conference, Prouza highlighted how these practices not only harm local businesses but also result in significant losses for the state in customs duties, VAT, and waste recycling fees. The Czech Trade Inspection Authority (Česká obchodní inspekce - ČOI) is currently investigating several foreign online marketplaces, including the Chinese platform Temu, with support from other EU regulatory bodies, spokesperson František Kotrba confirmed. Prouza cited aggressive marketing, misleading pricing, and inadequate complaint processes as key issues with foreign marketplaces. He called for systemic action at both the national and EU levels, emphasizing the need to strengthen the capacity of the ČOI to address these challenges. Some online retailers allegedly underreport shipment values, allowing them to evade customs duties and pay reduced VAT. According to Prouza, the state loses an estimated CZK 6.7 billion annually from uncollected customs duties and an additional CZK 1 billion in unpaid waste and recycling fees. Last year, the ČOI conducted ten inspections of Temu’s operator, Whaleco Technology Limited, in response to 20 consumer complaints. “The ČOI is part of a joint EU effort to enforce consumer protection legislation,” Kotrba said. In December 2024, Temu responded to the findings, and the ČOI is now awaiting potential remedial commitments from the platform. Should Temu fail to comply, enforcement measures, including fines, may follow. The ČOI also received complaints regarding other foreign platforms, including five against Chinese retailer Shein and three concerning Turkish marketplace Trendyol. Of these, eight cases have proceeded to administrative hearings, while others remain under investigation. The Association for Electronic Commerce has urged stricter enforcement of existing regulations rather than the introduction of new ones. “We appreciate that the government recognizes the issue, but concrete solutions are still lacking,” said executive director Jan Vetyška. He noted that while there have been improvements in areas such as commercial terms, significant challenges remain. In 2024, Czech consumers spent approximately CZK 34 billion on foreign online marketplaces, compared to CZK 194 billion spent at Czech e-shops. Prouza pointed out that platforms like Temu are particularly popular among local shoppers. Despite this, Upgates, a provider of e-shop solutions, does not foresee foreign marketplaces dominating the Czech market. “Local e-shops with strong branding and customer engagement will always have their place,” said marketing manager Michal Benatzky. However, he acknowledged that foreign platforms are cutting into the growth potential of Czech e-shops, depending on the specific market segment. Shoptet director Samuel Huba added that Czech consumers are increasingly prioritizing sustainability and product quality, which could favor local retailers in the long term. The growing competition from foreign marketplaces highlights the need for stricter oversight and innovative strategies to support Czech retailers while ensuring fair competition in the digital marketplace. Source: Česká obchodní inspekce (ČOI) and CTK