May 24, 2024 12:13 am
Temu faces potential legal action from consumer advice center

The consumer advice center has announced its intention to take legal action against Chinese online marketplace Temu for multiple violations, as announced by the Federal Association of Consumer Organizations (vzbv) in Berlin. The platform has been accused of unsettling and taking advantage of consumers with arbitrary discounts, questionable reviews, and manipulative designs.

Temu has faced criticism for not providing clear information on how the high discounts are offered and for pressuring consumers to make purchases with manipulative design tactics. However, the company defends its practices, stating that they reflect the real state of inventory and are intended to help consumers make informed decisions.

Recent discount offers of up to 90% by Temu have caused a stir in the market, making it the most downloaded shopping app in Germany according to Similarweb. Trade experts and associations have called for stricter actions against Chinese low-cost marketplaces like Temu, especially regarding the safety of products sold on the platform.

The consumer advice center is closely monitoring Temu’s practices and considering legal action to protect consumers’ rights. Whaleco Technology Limited, the company behind Temu, has responded to the warning but has not made a cease and desist declaration. The platform claims to be committed to ensuring fair practices and is open to working with consumer groups to improve transparency and cater to local preferences.

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