Temu ordered to make changes to their website, fake discounts and misleading information

Chinese webshop Temu does not comply with consumer law and must adjust its working methods. This was reported by the Netherlands Authority for Consumers & Markets (ACM) on behalf of several European consumer supervisors. For example, Temu allegedly offers fake discounts in the webshop.

Temu has been given a month by the regulators to report how the company is changing its business practices. If Temu fails to do so, the company may face sanctions.

Earlier this year, the consumer association and 16 other consumer organizations filed a complaint with the national supervisory authorities. Among other things, the consumer organizations claimed that Temu was using prohibited techniques to influence consumers. The company would also make it unnecessarily difficult for customers to cancel their accounts, which is not allowed under European law.

The regulators also stated that Temu used countdown clocks and indicated that a product was almost sold out in order to persuade consumers to buy a particular product. In addition, the webshop would increase pressure with game elements without providing information about what consumers would get out of it. The webshop is also said to contain misleading sustainability claims.

Furthermore, according to the watchdogs, Temu's webshop lacks important information, for example about the rights of customers to return products and get their money back. It is also made difficult for consumers to contact customer service because contact details are hidden, according to the ACM.

The European Commission also suspects that Temu does not comply with European rules. Last week it was announced that the Commission is launching an official investigation into the possible sale of illegal designs and the potentially addictive effect of the platform.

Temu became active in Europe last year and has been very popular since then, because the products are cheaper than in many other web shops. Web shops like Temu are criticized a lot. According to critics, cheap web shops contribute to overconsumption. Also, some products such as toys are said to be unsafe. Temu said in September that it had 92 million visitors per month.