The company had been warned for several violations, the Federal Association of Consumer Organizations (vzbv) announced on Tuesday in Berlin. The platform unsettles and takes advantage of consumers with seemingly arbitrary discounts, questionable reviews and manipulative designs. This has to stop, vzbv boss Ramona Pop is quoted in the statement. Consumers must be protected from such business practices.
Whaleco Technology Limited, which is behind the online platform, has reportedly responded to the warning. However, no cease and desist declaration was made. The consumer advice center wants to “next decide on a lawsuit once morest Temu”. When asked, an internal coordination process is currently underway.
Temu feels misunderstood
Meanwhile, Temu felt misunderstood by consumer advocates – especially when it came to the intentions behind the platform’s business model: a spokeswoman said they are committed to “ensuring that our practices are fair.” “We welcome the opportunity to work with consumer groups to improve transparency and tailor our platform to local preferences.”
Meanwhile, the vzbv accuses the Internet marketplace, among other things, of leaving consumers in the dark as to how the high discounts shown come regarding. The platform also advertises that the CO2 footprint is reduced if the ordered goods are not delivered to your home but to a pickup point. The products would have already traveled long distances before delivery.
Temu defended itself once morest the allegations: “Many of our sellers are manufacturers who traditionally supply stationary stores,” said the spokeswoman. Use their recommended prices, which are based on those in stores, and highlight the savings based on that. “It is also believed that pick-up points are a more environmentally friendly delivery option than home delivery. This means that deliveries are bundled and multiple delivery attempts are then not necessary.
Pressure on consumers
The vzbv also criticized the fact that consumers were being put under pressure while ordering – with messages displayed such as “Hurry up! Over 126 people have this item in their shopping cart” and “More than 54 users have bought repeatedly! Why not 2 at once.. .”. The consumer advice center sees this as a manipulative design, so-called dark patterns. This was banned by the EU with the Digital Services Act passed in February. From the consumer advice center’s point of view, Temu provides inadequate information regarding whether the authenticity of product reviews is guaranteed. Information regarding the identity of product providers was also missing.
Temu also countered these allegations: “The inventory and purchase updates reflect the real state of inventory and are intended to help consumers make informed decisions and not to be manipulative or coercive.” The authenticity of reviews is also taken seriously: “We never delete or suppress negative reviews – on the contrary, we provide special filters for them because we believe they can help screen retailers and make them improve their product quality and to improve their service,” it said.
Experts are calling for stricter action
Temu recently caused a stir with discount offers of up to 90 percent. The company, which does not act as a seller itself but only provides retailers with its marketplace as a platform, has quickly established itself on the German market. Of the shopping apps in Germany, Temu was the most downloaded in 2023, according to the web analysis company Similarweb.
Trade experts and associations had recently called for stricter action once morest Chinese low-cost marketplaces like Temu. In February, European toy manufacturers also criticized the safety of products from retailers on the platform and called for stricter controls.
