A spokesperson from the German Federal Ministry of Economics confirmed to Capital magazine that the ministry is concerned about the business practices of "Chinese discount shops" Temu and Shein and is preparing an "e-commerce action plan."
The spokesperson emphasised the importance of enforcing legal provisions equally for both EU traders and those from third countries.
They said: "It is crucial that existing legal provisions are enforced just as consistently against traders from third countries as against traders from the EU. This applies to the applicable standards for product safety, environmental protection and consumer protection as well as to customs and tax law."
The Ministry of Economic Affairs is understood to be currently reviewing new measures and potential adjustments to existing regulations. Capital claims discussions have already taken place with federal states, the EU Commission and the EU Parliament in recent months.
Germany's main retail association, called HDE, has reportedly been lobbying the government to ensure fair competition. It also claims customs authorities "lack the capacity" to check that all imported products comply with EU rules.
In June, Germany's state secretary in the Federal Ministry for Economic Affairs and Climate Action met with representatives from Temu and Shein to discuss these issues.
According to the ministry, the goal is to ensure fair competition for all market participants.
A Temu spokesperson exclusively told Just Style that the online retailer is relatively new to Europe, having entered its market just over a year ago.
The spokesperson said: "We have listened carefully to feedback from customers, regulatory bodies, and consumer advocacy groups. We have been actively adjusting our services to align with local practices and preferences, and we are fully committed to complying with the laws and regulations of the markets where we operate."
Meanwhile, Capital noted the German Retail Association has also raised concerns over what it described as "unacceptable conditions" and is urging politicians to take action.
Lately, Shein and Temu have been at the brunt of controversies. Last week, two members of the US Consumer Product Safety Commission (CPSC) called for the organisation to investigate online retailers Shein and Temu as they allege “deadly baby and toddler products” have been sold on both sites.
This follows calls by the human rights group Stop Uyghur Genocide (SUG) to the Financial Conduct Authority (FCA) to block Shein's bid to list on the London Stock Exchange on allegations of forced labour within its supply chain.
