Online marketplace Temu violates EU rules on consumer protection

SDA

8.11.2024 - 17:26

The EU Commission has found false discount promotions and fake reviews in the Temu app. (archive image)
The EU Commission has found false discount promotions and fake reviews in the Temu app. (archive image)
Keystone

The Chinese online marketplace Temu needs to improve its consumer protection. Several practices on the platform violate EU law, as the European Commission and the Consumer Protection Cooperation Network (CPC Network) announced.

Keystone-SDA

Temu has one month to respond to the results of the investigation and explain how it intends to remedy the consumer protection problems.

"Temu must now take EU rules seriously and bring its practices fully in line with our consumer law," said the responsible Justice Commissioner Didier Reynders. False discount promotions, fake reviews and missing and misleading information on consumers' legal rights were identified as problematic practices. Temu also hides contact details so that customers cannot contact the platform without difficulty.

Pressure on consumers

The CPC network also complained that the platform exerted pressure to buy. It gave the impression that products were only available in limited quantities or for a short time. The auditors also criticized so-called forced gamification. Consumers were forced to spin a wheel of fortune in order to access the online marketplace. However, information about the terms of use of the game was concealed.

When asked, a Temu spokesperson said that they would work closely with the authorities to resolve any issues and ensure compliance with EU law. "We will cooperate fully with this investigation." At the end of October, the Commission had already opened formal proceedings against Temu under the Digital Services Act.