The European Commission (EC) announced that it has found the online marketplace Temu in violation of European consumer protection laws through various problematic practices, including misleading consumers, fake discounts and reviews, and high-pressure sales tactics.
According to the EC’s statement, following an investigation, the Network of National Consumer Protection Cooperation Authorities (CPC Network) and the European Commission informed Temu about several practices on its platform that breach EU consumer law, urging compliance with these laws and requesting additional information.
The CPC Network identified multiple types of problematic practices on Temu, which it views as contrary to EU consumer protection regulations.
These practices include creating a false impression that products are discounted when they are not or pressuring consumers to make purchases by using tactics like false claims about limited stock or fake purchase deadlines.
Additionally, consumers are required to participate in a "spin the wheel" game to access the online marketplace, while critical information regarding the terms and conditions associated with the game rewards is withheld.
The EC also flagged deceptive information, such as incomplete or inaccurate details about consumers' legal rights to returns and refunds.
Temu also fails to inform consumers upfront that their orders must reach a certain minimum value before they can complete a purchase.
The platform does not provide adequate information on how it ensures the authenticity of reviews posted on its site, and consumers have limited means to contact Temu for inquiries or complaints.
Last week, the European Commission initiated a formal proceeding against Temu to investigate whether it violates regulations on the sale of illegal products.
Temu remains under investigation by the EU, led by the national authorities of Belgium, Germany, and Ireland, in coordination with the Commission.
Temu now has one month to respond to the CPC Network’s findings and propose how it will address these issues.