Temu faces legal challenge over ‘manipulative practices’

Chinese online marketplace Temu is facing a legal challenge after 17 companies accused the company of breaking new EU laws with its “manipulative practices” and lack of transparency. It was the most downloaded app in Britain in 2023 and remains high in the Apple App Store charts.

By means of Mickey Carroll, science and technology reporter


Thursday May 16, 2024 12:20 PM, UK

Temu is facing a new legal complaint filed by 17 companies in the European Union.

The Chinese The online retailer is accused of “failing to protect consumers” and “using manipulative practices that have recently become illegal.” EU legislation,” said consumer group BEUC.

Temu only launched in September 2022, but has quickly become one of the most popular online marketplaces in the world.

In Britain it was the most downloaded app in 2023 and remains high in the Apple App Store charts, but it is now facing problems in the EU.

The legal complaint alleges that the company is violating new rules that mean products, regardless of where the company is based, must comply with European law when sold to European consumers.

Consumer group Which one? found it weapons for sale on the market and heaters that “may explode” but now warns that British companies are unable to challenge the Chinese retailer.

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“It is positive to see other consumer groups across Europe joining forces to hold Temu to account for failing to prevent unsafe products from reaching people’s homes,” said Rocio Concha, director of policy and advocacy at Which?.

“However, the UK is at risk of being left behind as weak consumer protection laws make it harder to take effective action against Temu and other online marketplaces.”

‘Some Temu traders untraceable’

The legal complaint accuses the company of “manipulative practices,” such as making it more difficult to delete your account than to set it up, and misleading customers about pricing.

It also accuses Temu of making some of its traders untraceable to consumers, in breach of EU law.

“Temu does not know the merchants selling on its platform and may not be able to ensure that all products sold by those merchants comply with EU standards,” the complaint reads.

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‘Unclear why some products are recommended’

The company also claims that Temu is not clear enough about why certain products are recommended to users, which is also against EU law.

Temu told Sky News in a statement: “Our commitment to compliance and our willingness to engage stakeholders globally are reflected in our proactive actions.

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Cease and Desist Declaration

“This past week, Temu signed a cease and desist declaration Germany [Federation of German Consumer Organisations]committing to address concerns about our practices.

“In addition, Temu signed a product safety pledge on Monday That of South Korea Fair Trade Commission, which is committed to a comprehensive system to detect, prevent and remove unsafe products from circulation.

“Regarding the BEUC complaint, we take it very seriously and will investigate it thoroughly. We hope to continue our dialogue with relevant stakeholders to improve Temu’s services to consumers.”

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