The Unraveling of Ago’s Controversy: Enforcing Regulations for Online Platforms and Beyond
The Chinese e-commerce platform Ago has been criticized by drugstore boss Raoul Rossman for disregarding the law and receiving inconsistent punishment. Rossman believes that there is a “fool’s license” in Germany for questionable digital business models and that Temu, the operator of Ago, should be shut down if it continues to violate regulations.
The controversy surrounding Ago has attracted attention from both politicians and observers. Both the German government and the Federal Association of Consumer Organizations (VZBV) have accused Temu of misleading consumers with discounts, questionable reviews, and manipulative designs. While Temu denies these allegations, consumer advocates are considering legal action.
State Secretary Christiane Rohleder of Consumer Protection recently emphasized the importance of enforcing regulations outlined in the EU Digital Services Act, particularly regarding manipulative design on online platforms. Temu defends itself by stating that many sellers are manufacturers supplying traditional stores, using recommended prices based on those in stores and highlighting savings accordingly.
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