EU Consumer Groups Accuse Temu of Manipulating Online Shoppers

European consumer groups leveled accusations against the Chinese shopping app Temu, alleging it employs manipulative techniques to encourage excessive spending and violates the EU's tech law, the Digital Services Act (DSA).

EU Consumer Groups Scrutinize Temu

Temu, a rapidly expanding app, made its debut in the EU market in April 2023, boasting an average of 75 million monthly active users across the 27-country bloc.

According to BEUC, a network of consumer groups, complaints have been lodged against Temu for its alleged failure to safeguard consumers and its utilization of manipulative tactics, which contravene recent EU legislation.

Temu reportedly neglects to furnish essential information about product sellers, hindering consumers from determining if the products comply with EU safety standards.

Additionally, the group claims that the platform lacks transparency regarding its recommender systems and the suggested product criteria.

Allegations also include the implementation of manipulative practices, such as dark patterns, to coerce consumers into spending more or complicate account closure procedures. These alleged actions violate the Digital Services Act, prompting calls for authorities to investigate Temu's conduct.

Monique Goyens, Director General at the European Consumer Organisation (BEUC), emphasized the necessity of addressing Temu's practices and expressed concern over manipulative techniques employed by the online marketplace.

Goyens highlighted instances where consumers are subjected to upselling tactics, encountering more expensive product options once they select an item, or facing hurdles when attempting to close their accounts.

Moreover, Goyens said that Temu's reported lack of seller transparency prevents consumers from making informed decisions and obstructs compliance with EU safety regulations.

Other Groups Scrutinize Temu

Many organizations have raised doubts about the legality and safety of products available on Temu. Altroconsumo, an Italian consumer group, and BEUC member revealed deficiencies in cosmetic products purchased from Temu, including missing ingredient lists or partial disclosures.

Similarly, vzbv, a German consumer organization, and BEUC member suspects Temu of violating consumer laws through misleading product reviews and pricing practices.

In response to the allegations, Temu told AFP that it takes the complaint seriously and pledges to thoroughly investigate the matter, collaborating with relevant stakeholders to address any identified shortcomings. The company is committed to transparency and compliance with applicable laws and regulations.

"Temu may be taking Europe by storm, but today we want to shine a light on its many illegal practices which are disregarding consumers' interests and which authorities must rein in. The online marketplace is rife with manipulative techniques that are designed to push consumers to spend more on the platform," Monique Goyens, Director General at the European Consumer Organisation (BEUC), said in a press release.

"Temu is being complacent here because it is breaching the EU's Digital Services Act, which is major new legislation designed to keep consumers safe online. Products sold on marketplaces, whether online or offline, whether they are European, American or Chinese, must be safe and comply with European law if they sell to European consumers."