Temu Faces Legal Dispute with Argentine E-commerce Giant

Chinese e-commerce platform Temu has entered a legal battle with Mercado Livre, Argentina's largest online platform. Mercado Livre accuses Temu of unfair competition, claiming that its marketing tactics and promotions are misleading.

The Accusation of Unfair Competition

Mercado Livre filed a formal complaint in August 2025, alleging that Temu violated Commercial Competition Decree no. 274/2019. The main accusation revolves around Temu's commercial strategy, which according to Mercado Livre is based on extreme discounts and promotions that do not materialize under the announced conditions.This includes discounts of up to 100% that depend on additional requirements, such as minimum purchases or the completion of actions within the application.

Mercado Livre also criticized what it called Temu's “gamification deceptive”, where games and interactive features promise free prizes or products, but in practice impose increasingly complex and obscure conditions.

Temu's Response and Judicial Action

In response to the allegations and an investigation initiated by the Argentine authorities, which ordered the suspension of advertising and promotions deemed misleading, Temu appealed to federal justice.

Temu refutes the accusations, stating that its business model is transparent and that prices, discounts and conditions are clearly communicated to users, which, according to the company, rules out any mistake to the consumer.

The Context of Dispute

This legal battle comes amid a rapid growth of cross-border e-commerce in Argentina. Platforms such as Temu and Shein have seen a significant increase in direct purchases, driven by low prices, direct shipping and intensive marketing on social networks.The expansion of these Chinese platforms has revived the debate on the regulatory framework for digital commerce and competition between domestic and foreign companies.

Mercado Livre emphasizes the need for “igual rules for all”, positioning the case as an important precedent for competition and advertising in the Argentine e-commerce sector.

Future Implications

The outcome of this case could significantly influence advertising and promotion practices in the Argentine online retail market and potentially in other regions of Latin America.The dispute raises crucial questions about transparency in offerings, clarity of conditions and the fine line between aggressive marketing and deceptive practices in modern e-commerce.