The German Federation of Consumer Organizations has identified several violations at the Chinese low-cost platform Temu. Among other things, the design on the marketplace is manipulative and discounts are misleading. The consumer association has therefore issued a warning to the company.
The Federation of German Consumer Organizations (vzbv) has issued a warning to the Chinese low-cost platform Temu. The reason: According to the vzbv, it found several violations involving Chinese products on the platform. According to the vzbv, Temu conceals from consumers how the sometimes enormous discounts are achieved.
Consumer advice center warns Temu
The consumer advice center also criticizes the inadmissible use of manipulative designs. Whaleco Technology Limited, the company behind Temu, has already responded to the warning. However, the company did not issue a cease-and-desist declaration. The vzbv therefore intends to consider legal action against Temu. Vzbv board member Ramona Pop said:
In Germany and the European Union, laws are in place to protect consumers and all companies must comply with them. The Temu platform unsettles and takes advantage of consumers with seemingly arbitrary discounts, questionable reviews and manipulative designs, and this must stop. Consumers must be protected from such business practices.
Multiple violations
The warning from the consumer advice center is based on several violations. Among other things, Temu advertises discounts of up to 70 percent without mentioning any reference prices. The company also advertises that the CO2 footprint is reduced if consumers have goods delivered to a pick-up point instead of to their home.
However, the products have already traveled a long way by the time they are delivered – usually by plane from China. The vzbv also criticizes the fact that during the ordering process, a number of notices such as “Hurry up! Over 126 people have this item in their shopping cart” or “More than 54 users have bought repeatedly! Why not 2 at once…” appear.
However, such manipulative designs – also known as dark patterns – have been banned under the EU’s Digital Services Act since February 17, 2024. According to the vzbv, Temu also does not inform consumers sufficiently about whether and to what extent the company guarantees the authenticity of product reviews. However, providers are obliged to provide this information.
