The Consumer Protection Cooperation Network (CPC), coordinated by the European Commission, has requested information from the online sales platform Temu after detecting certain commercial practices that could violate European consumer protection laws. Additionally, Brussels recently initiated an investigation into the Asian giant over suspicions of online sale of illegal products.
The CPC network authorities have identified a wide range of practices that consumers face when buying through the Chinese website, "including techniques that can mislead consumers or unduly influence their purchasing decisions," as stated this morning by the Ministry of Consumer Affairs in a press release.
Specifically, consumers face fake discounts, pressure sales, where "tactics such as false claims about limited product availability or false purchase deadlines are used to urge consumers to make a purchase." As well as gamification of purchases, where consumers are required to play the "wheel of fortune to access the online market, while hiding essential information about the game-related terms of use," and "lack of information or misleading information about consumers' legal rights to return products and receive refunds, in addition to not informing consumers in advance that their order must reach a certain minimum value before they can complete their purchase." Fake reviews of their products have also been detected, as well as hindering buyers who want to contact Temu with questions or complaints because the contact details are hidden.
Meanwhile, Temu has stated to this newspaper that it "acknowledges the concerns raised by the European Commission and national consumer protection authorities, and reiterates its commitment to working closely with relevant regulators to address any issues and ensure compliance with EU laws." Now, the company has one month to respond to these fraudulent situations and propose "commitments on how it will address identifiable consumer rights issues." Failure to respond will lead authorities to take coercive actions to ensure compliance with the law and thus ensure a safe and reliable online environment "where the rights of European consumers are respected."