South Africa Launches Investigation Into Temu and Shein Over Consumer Protection Act Compliance

South Africa’s National Consumer Commission (NCC) has initiated a formal investigation into e-commerce giants Temu and Shein for alleged non-compliance with the Consumer Protection Act (CPA). The announcement was made during a mid-November G20 summit panel titled “Developments in Consumer Protection – Product Safety and Digital Markets.”

According to the NCC, the probe will scrutinise the companies’ marketing practices, product safety standards, and the way they operate within digital markets, especially in relation to how they represent themselves to consumers.

E-Commerce Now a Key Focus for NCC

Per a report by MyBroadband, NCC Executive Head Prudence Moilwa confirmed that both Temu and Shein have been officially notified of the investigation and instructed to cooperate fully. She explained that the rapid growth of e-commerce has made it a priority for the commission.

“We intend to go into that space and test their compliance fully with the Consumer Protection Act. As a commission, we are signalling to the e-commerce space to say that the commission is here to hold you accountable,” Moilwa stated.

The NCC also revealed that it is monitoring the impact of Temu’s local warehouse operations in South Africa. While no official consumer complaints have been filed against Temu, the commission maintains that proactive oversight is essential to maintaining a fair retail environment.

Regulation Must Keep Up With Technology, Says NCC

Moiswa emphasised that South Africa’s regulatory framework must evolve alongside emerging technologies. As digital markets expand, regulators must be equipped to enforce compliance effectively.

“We are not discouraging innovation, but we want it to be done within the lawful framework,” she added.

Concerns Over Algorithms and Consumer Data

Beyond product safety and marketing, the NCC is also investigating how Temu and Shein use algorithms and public data to influence consumer behaviour. The commission is concerned about how these platforms collect data, what data they collect, and how automated systems use this information to target consumers.

Moilwa argued that while algorithm-driven personalisation can improve sales and enhance customer experience, consumers must still retain the ability to make independent purchasing decisions.

Platforms, she stressed, must be transparent about:

• What data do they collect?
• How do they collect it?
• How automated systems use that data to shape what consumers see

E-Commerce Boom Fuels Stricter Oversight

South Africa’s e-commerce market has surged alongside rising internet penetration, which reached 74.7% in 2024. Online shopping is projected to continue expanding through 2033, attracting global players seeking to strengthen their foothold in the region.

To foster inclusivity and expand its reach, Temu earlier this year launched support for several South African languages, including Zulu, signalling its intent to compete aggressively in the market.

As Chinese e-commerce platforms scale operations, the NCC is tightening oversight to ensure consumer rights, market fairness, and legal compliance remain protected.