The Competition Commission of Pakistan (CCP) has launched a formal inquiry into Chinese e-commerce giant Temu following allegations of misleading and anti-competitive practices that are said to be disrupting the local market.

Temu, which recently entered Pakistan with a wave of aggressive, discount-heavy advertising, stands accused by the Chainstore Association of Pakistan (CAP) of undercutting domestic retailers through artificially low prices and exploiting the De Minimis exemption to avoid taxes and import duties.

According to CAP, these tactics put tax-compliant local businesses at a disadvantage while also eroding consumer protection and regulatory oversight. The association further alleges that Temu operates without a legal presence in Pakistan, encourages pre-payments in foreign currency without offering cash-on-delivery options, and poses risks to the country’s current account balance. Additional accusations include under-declaring the value of goods, splitting high-value orders to evade duties, and mislabeling products.

CAP has called on the CCP to coordinate with the Ministry of Commerce, Federal Board of Revenue (FBR), and Securities and Exchange Commission of Pakistan (SECP) for stricter enforcement, mandatory registration of foreign platforms, and digital tracking of shipments. The association also urged logistics companies to process only those shipments with valid invoices and declared values.

Separately, a complaint filed with the Office of Fair Trade accuses Temu of predatory pricing, threatening the survival of small retailers, and creating unfair competition in the market.

The CCP is currently reviewing these complaints amid growing concerns that unregulated foreign e-commerce platforms are undermining Pakistan’s formal retail and e-commerce sectors.