Temu Under Fire for Alleged EU Consumer Law Violations, Invokes Needing More Time to Adapt

• An E.U. investigation accused Temu of concerning practices that could mislead customers, potentially infringing consumer protection laws.
• The Chinese shopping app reportedly relies on pressure selling, missing or misleading information, and suspicious reviews.
• Forced gamification is also on the list, a characteristic found in most e-commerce apps with low prices.

The online marketplace Temu is under scrutiny in Europe due to practices that potentially infringe on E.U. consumer protection laws, including deceptive discounts, forced gamification, suspicious reviews, pressure selling, missing or misleading information, hidden contact details, and false environmental claims.

Its popularity soared in Europe in the last few years, thanks to low prices and a variety of products ranging from clothing to house decorations. In response, the platform acknowledged being a young platform in the E.U. and said it actively adapts to local requirements.

“Although we have gained popularity with many consumers in a relatively short time, we are still a very young platform — less than two years in the E.U. — and are actively learning and adapting to local requirements,” Temu responded.

Launched by the Consumer Protection Cooperation (CPC) Network, composed of E.U. member states and Iceland & Norway, the investigation focuses on Temu's practices regarding misleading advertising and information obligations for online marketplaces, which could mislead or unduly influence consumers.

The allegations imply the shopping platform offers products at false discounts or inflated prices, urging consumers to purchase through tactics like limited stock or expiring deadlines. Failing to provide clear details on return rights, refunds, minimum order values, and seller information, potentially hosting fake reviews, and lacking transparency on review authenticity are also on the list.

Temu requires users to play "spin the fortune wheel" without disclosing reward limitations and makes reaching customer support difficult for customers. The investigation says it also holds potential for inaccurate or unsubstantiated environmental claims.

Customers on app stores flagged the low quality of most items, the long delivery time, and the hard refund process on missing items. 

Temu has one month to propose solutions to address these issues raised by the coordinated investigation by the European Commission and national consumer authorities. Failure to comply could result in enforcement actions, including revenue-based fines.

Currently, Temu is facing a lawsuit in Arkansas for allegedly spying on mobile app users. Other issues, which Temu denied, include a cybercriminal who reportedly sells stolen customer data and the findings of a report that presents safety concerns with toys the online store sells.

Meanwhile, the Android and Apple app stores are hosting several apps impersonating legitimate trading companies, which enticed victims with promises of high investment returns, only to defraud them of their funds.