Seventeen companies in the European Union have filed a legal complaint against Chinese online retailer Temu, citing allegations of consumer protection violations and manipulative practices. According to consumer group BEUC, Temu, which was launched in September 2022 and has quickly become a popular global marketplace, has failed to comply with recent EU legislation.
Although Temu remains a highly downloaded app in the UK and ranks high in the Apple app store charts, it is now facing difficulties in the EU. The legal complaint states that regardless of where a company is based, it must comply with European law if it sells products to European consumers. Consumer group Which? discovered weapons for sale on Temu’s platform, as well as heaters that have the potential to explode. The group also warns that UK companies do not have the ability to challenge Temu’s practices.
Rocio Concha, director of policy and advocacy at Which?, commends the joint efforts of consumer groups across Europe in holding Temu accountable for its failure to prevent unsafe products from reaching consumers’ homes. However, she expresses concern that the UK may be left behind due to weaker consumer protection laws, making it more challenging to take effective action against Temu and other online marketplaces.
The legal complaint accuses Temu of manipulative practices, such as making it difficult for users to delete their accounts and misleading customers about pricing. It also alleges that some of Temu’s traders are untraceable by consumers, which is in violation of EU laws.
The complaint further states that Temu is not transparent about why certain products are recommended to users, another violation of EU law. In response, Temu issued a statement to Sky News, stating their commitment to compliance and willingness to engage with stakeholders globally. They also acknowledge the recent cease-and-desist declaration they entered into with Germany’s Federation of German Consumer Organisations, as well as their product safety pledge with South Korea’s Fair Trade Commission.
Temu states that they take the BEUC complaint seriously and will thoroughly review it. They also express their hope to continue a dialogue with relevant stakeholders to improve their service for consumers.
