European Commission Targets Temu’s Misleading Marketing Tactics
The European Commission, alongside national consumer authorities, has identified illegal practices by Chinese retail giant Temu, including fake discounts and misleading reviews. This comes as part of a probe led by Belgium, Germany, and Ireland under the Consumer Protection Cooperation Network. The investigation found that Temu engages in aggressive marketing tactics, such as offering deceptive discounts and exaggerated product availability, creating an artificial sense of urgency for consumers. Additionally, the company has been criticized for not adequately informing consumers about their right to return products and for not providing clear contact information for complaints.
Temu’s practices extend to using a “spin the fortune wheel” game, which lacks transparency regarding its conditions and rewards. This lack of clarity and transparency has raised significant concerns among consumer authorities. The European Commission has given Temu a one-month deadline to address these issues and outline corrective measures. Failure to provide a satisfactory response could result in substantial fines, highlighting the seriousness of the situation.
AgustÃn Reyna, director-general of the European consumer organization BEUC, emphasized the importance of collaborative enforcement efforts to address Temu’s violations. Reyna stressed that if Temu fails to comply, authorities must impose significant penalties. He criticized Temu for flooding the EU market with potentially unsafe products, such as toys and electrical goods, while disregarding consumer laws and the Digital Services Act (DSA).
This investigation coincides with ongoing formal DSA proceedings against Temu, which focus on similar harmful practices and the addictive nature of its platform. With approximately 45 million monthly visitors across the EU, Temu’s operations are under intense scrutiny, and compliance with EU regulations is paramount to avoid severe repercussions.
Source: EU Commission warns Temu to fix consumer protection violations
