European consumer activists express concerns over Temu.
Temu, a Chinese e-commerce platform, is under scrutiny for its alleged manipulative tactics aimed at controlling customer spending and commissioning accused purchases. European consumer advocates have lodged a complaint against the online marketplace, alleging that it breaks EU's rule on digital services.
"Temu has several deceptive practices within its platform that encourages consumers to spend more," said Monique Goyens, head of the EU Consumer Organization, BEUC. Goyens further elaborates that users are shown more expensive versions when they click on a specific product, making a deliberate effort to influence their purchasing behavior.
Removing one's account from Temu is bothersome, as the platform demands a complex process that creates hurdles for users intending to delete their accounts. Additionally, Temple often fails to inform consumers about the original seller, making it perplexing to determine if the purchased items adhere to EU safety regulations or not.
Last year, the Federation of German Consumer Organizations (vzbv) cautioned Temu about its "manipulative designs" and false environmental claims. In response, the company pledged to discontinue notices like "Over 126 people have this item in their shopping cart", but most notably, asserted that this strategy would apply only to Germany and not across other European countries.
Financials for Temu in 2023: A Record High
Pinduoduo, the parent company of Temu, reported an approximate doubling of its profits in March, revealing an exceptional year in 2023. The platform appeals to customers by offering exceptionally low prices, although it routinely faces criticism for its suspect product quality, unfulfilled deliveries, as well as its devastating environmental impact.
The concerned authorities in the European Member States are now assessing if Temu infringes the Digital Services Act (DSA). This legislation in particular requires online retailers to disclose information regarding providers and the nature of personalized ads on their platforms. In cases of violations, organizations face significant fines of up to six percent of their overall yearly revenue.
Contracting into agreements from authorities can result in a hefty fine for Temu if they are found in breach of any of the EU's laws. However, based on the existing complains and claims, conjectures predict steep fines for the e-commerce giant.
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The European Union (EU) has joined forces with consumer advocates to examine Temu's compliance with their digital services regulations, as concerns over consumer protection and potential manipulative trading practices arise. Given that Temu is a Chinese e-commerce platform, this scrutiny represents a significant challenge for the company, potentially leading to substantial fines if found in breach of EU laws.
Source: www.ntv.de
