Temu is facing legal action from 17 companies accusing it of violating new EU laws with “manipulative practices” and a lack of transparency.
According to the consumer group BEUC, the Chinese online retailer is accused of “failing to protect consumers” and employing manipulative practices that are illegal under recent EU legislation, Sky News reports.
Temu only launched in 2022, but has rapidly become one of the most popular online marketplaces in the world.
Back in March, its owner PDD beat expectations as revenues doubled in ‘pivotal’ year where it saw immense growth.
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It was the most downloaded app in 2023 in the UK, but it is now encountering challenges in the EU.
The legal complaint claims the company is violating new rules that require products to comply with European law, regardless of where the company is based, if they are sold to European consumers.
Consumer group Which? found weapons for sale on the marketplace and heaters that “could explode” but now warns UK companies do not have the ability to challenge the Chinese retailer.
Which’s director of policy and advocacy Rocio Concha told Sky: “It is positive to see other consumer groups across Europe joining together to hold Temu to account for failing to prevent unsafe products ending up in people’s homes.”
“However, the UK risks being left behind as weak consumer protection laws make it more difficult to take effective action against Temu and other online marketplaces.”
The legal complaint accuses the company of “manipulative practices” like making it harder to delete your account than to set it up, and misleading customers on pricing.
It also accuses Temu of allowing some of its traders to be untraceable by consumers, which is against EU laws.
“Temu fails to know the traders selling on its platform and may not be in a position to ensure that all the products sold by those traders comply with EU standards,” the complaint reads.
It also alleges Temu fails to provide sufficient clarity on why certain products are recommended to users, a violation of EU law.
Temu told Sky News in a statement: “Our commitment to compliance and our willingness to engage stakeholders globally can be seen in our proactive actions.”
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