The ACCC is turning its attention to online marketplaces like Shein and Temu, citing unsafe products and opaque marketing practices. Chair Gina Cass-Gottlieb flagged product safety as a priority for the upcoming financial year, marking a shift from the regulator's recent focus on supermarket pricing.
The numbers behind the scrutiny: Temu hit A$2.6 billion in Australian sales last financial year and now reaches 47% of Australians (4.7 million customers). Shein reaches 30% of Australian shoppers, recording 15% growth. Both platforms have displaced local competitors like Kogan (15% reach, declining 6% year-on-year) and the now-closed Catch and MyDeal.
The trust problem remains. Only 12% of shoppers trusted Temu and 11% trusted Shein in early 2025, though both platforms have recorded significant perception improvements (50% and 36% increases respectively). The ACCC's concern: dangerous baby products, sleep items, and devices with button batteries proliferating on these platforms.
Only AliExpress, Amazon, and eBay have signed the ACCC's voluntary product safety pledge. Temu and Shein have not. Cass-Gottlieb noted the regulator lacks "sufficient data that can properly bear upon product safety concerns," particularly for China-based operations where jurisdictional and transparency challenges create oversight gaps.
For B2B sellers using these platforms: compliance risk is escalating. The ACCC is pushing marketplace giants to sign product safety pledges and increase transparency. If you are running growth strategies that depend on these channels, factor in potential regulatory shifts and platform policy changes.
The broader focus includes subscription traps and influencer disclosure failures. The regulator is not just targeting the platforms but the entire digital commerce ecosystem. Worth noting: this comes after the ACCC's ongoing court case against Coles over misleading "Down Down" pricing claims.
For sales teams working with or on these platforms, the message is clear: compliance is no longer optional, and regulatory pressure is increasing.