The European Commission, along with national consumer authorities, has discovered that Chinese retail giant Temu engages in deceptive commercial practices such as fake discounts and misleading reviews. Following a probe by the Consumer Protection Cooperation Network, led by Belgium, Germany, and Ireland, Temu has been given one month to respond to these accusations. If the company fails to provide a satisfactory response, it could face substantial fines. The authorities have highlighted several issues with Temu’s practices, including exaggerating the availability of items, fostering sales urgency with deadlines, and failing to properly inform users of their right to return products. Additionally, consumer authorities have criticized Temu’s use of a “spin the fortune wheel” game, which lacks clear information about rewards or conditions.
The report issued by the European Commission warns Temu to rectify its deceptive practices or face potential fines. The Commission has commended the cooperation between enforcement authorities in addressing Temu’s failings and has emphasized the need for the company to comply with the law. Agustín Reyna, director-general of the European consumer organisation BEUC, has expressed support for authorities taking action against Temu should the company fail to comply. Reyna highlighted the issue of Temu sending products to the EU that may include unsafe toys or electrical goods, in violation of consumer law and the recent Digital Services Act. This investigation into Temu’s practices runs parallel to formal proceedings under the DSA, which focus on similar alleged harmful practices and the addictive nature of its platform.
Authorities have found that in addition to engaging in deceptive commercial practices, Temu also fails to provide clear contact details for complaints and does not adequately inform users of their right to return products. These issues contribute to the overall lack of transparency and potential harm for consumers. The Consumer Protection Cooperation Network, in collaboration with the European Commission, has identified the need for Temu to address these shortcomings promptly. The company has been given a one-month deadline to respond and outline corrective actions. Failure to comply with these requirements could lead to significant fines for Temu. The authorities are working together to ensure that consumer rights are protected and that companies like Temu are held accountable for their actions.
Temu attracts approximately 45 million visitors each month across the EU and has become a prominent player in the online retail market. However, the company’s deceptive practices and disregard for consumer rights have raised concerns among authorities and consumer protection organizations. The investigation into Temu’s practices is part of a broader effort to ensure that companies operating within the EU adhere to legal standards and protect the rights of consumers. The European Commission and national consumer authorities are working together to address issues related to deceptive commercial practices, misinformation, and lack of transparency. By holding companies like Temu accountable for their actions, authorities aim to create a fair and safe online marketplace for consumers across the EU.
In response to the findings of the investigation, Temu has been given an opportunity to respond and outline how it plans to correct its deceptive practices. The company must provide a satisfactory response within the one-month deadline to avoid facing potential fines. Authorities are closely monitoring Temu’s actions and have emphasized the importance of compliance with consumer protection laws. The cooperation between enforcement authorities and consumer organizations highlights the determination to hold companies accountable for harmful practices and protect consumer rights. As the investigation into Temu’s practices continues, the European Commission and national consumer authorities remain committed to ensuring transparency, fairness, and compliance with the law in the online retail sector. Temu’s compliance with corrective actions will be essential in maintaining a safe and consumer-friendly marketplace for online shoppers in the EU.
