Manipulation, deception, greenwashing: There are a whole bunch of violations for which consumer advocates are now issuing a warning to the Chinese online retailer Temu.
The Federal Association of Consumer Organizations (vzbv) has warned the Chinese online retailer Temu. “The Temu platform unsettles and takes advantage of consumers with seemingly arbitrary discounts, questionable reviews and manipulative designs. This must stop,” vzbv boss Ramona Pop told the newspapers of the Funke media group. Temu violates EU consumer protection laws and also practices greenwashing.
One example is the use of so-called dark patterns: The app puts pressure on customers with messages like “Hurry up! Over 126 people have this item in their shopping cart.” According to vzbv, this has been banned since the EU Digital Services Act came into force in February. “In Germany and the European Union there are laws to protect consumers that all companies must adhere to,” said Pop.
Temu, for example, practices greenwashing, i.e. advertising with false climate or environmental protection promises, by advertising delivery to a pickup point instead of home as climate-friendly. Most of the products come from China, according to vzbv. Whether the item is ultimately delivered to the pickup point or home has little impact on the climate footprint.
The next step could be a lawsuit
Overall, the company’s entire business model, with its sometimes extremely high discounts and product reviews in real time, is opaque and difficult to understand. “Consumers must be protected from such business practices,” Pop told the Funke newspapers. The next step after the warning could be a lawsuit.
The company behind the app, Pinduoduo, reported an almost doubled annual profit last week.
Temu tempts with extreme bargains, but is also repeatedly criticized for poor quality, non-receipt shipments and, last but not least, the catastrophic climate and environmental impact of its products. Several countries are taking action against the app. Two weeks ago, the French parliament passed a law banning the advertising of bargain clothing and imposing an environmental tax on cheap items.