Temu sends out a warning order after receiving a caution from a consumer counseling group.
Temu, an online retailer, has responded to a warning from the Federation of German Consumer Organizations (Vzbv) with a cease-and-desist order, promising to stop actions that were causing concern. The Vzbv had accused the company of unsettling customers with "sudden discounts, suspicious ratings, and deceptive designs."
The use of "dark patterns" was highlighted as illegal - these were notices like "Hurry! Over 126 people have this item in their shopping cart." Vzbv clarified that Temu should no longer employ this tactic in Germany.
Instead of facing a lengthy court battle, Temu has acquiesced to the Vzbv's demands. Vzbv's head, Ramona Pop, stated that they would monitor whether Temu adhered to its commitment. If the company fails to comply, Vzbv could demand a penalty.
Beyond this, Pop appealed for the European Commission to clarify the situation for consumers as well. "Manipulative and addictive designs on online platforms" should be avoided, according to Pop.
The organization behind Temu is Pinduoduo. In mid-March, the company reported a near-doubling of its profits from the previous year. The app draws buyers in with incredibly low prices, but has also been criticized for subpar quality, missed deliveries, and the detrimental effects of its items on the environment and climate.
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- Following the cease-and-desist declaration from the Vzbv, Temu has decided to cease using "dark patterns" with their strike prices in Germany, as warned.
- Consumer advice centers around Europe should take note of this situation, advising online retailers to avoid employing manipulative and addictive design patterns that could mislead customers, like those used by Temu.
- If Temu fails to adhere to the commitments made in the cease-and-desist declaration, they may face heavy penalties, which could significantly impact their profit margins, as seen in their near-doubling of profits in mid-March.
Source: www.ntv.de