Temu owner PDD Holdings has experienced a large-scale protest at its offices in southern China this week, as smaller partners protest penalties it has been dishing out.
Hundreds of merchants gathered to campaign against the increasing penalties imposed by Temu.
The smaller sellers claimed the firm is withholding payments and imposing fines for those who are judged to have missed customer expectations.
Small businesses selling Chinese goods to Western shoppers via Temu, protested by brandishing placards and chanting slogans outside the Guangzhou office.
According to reports, some protestors entered the building but dispersed without meeting senior executives.
Merchants accused PDD of imposing fines for issues such as missing delivery deadlines or incorrect product listings.
The fines have reportedly increased sharply in recent months without clear explanations.
In a statement, the company said, “These merchants have declined to resolve the disputes through the normal arbitration and legal channels stated in the seller agreements. The situation is stable, and the company is actively working with the merchants to find a solution.”
Protests come as PDD expands Temu globally, through high-profile advertising and entry into new markets like Thailand.