Consumer advice center is considering legal action against Chinese marketplace Temu

Consumer advice center is considering legal action against Chinese marketplace Temu

The consumer advice center is examining legal action against the Chinese online marketplace Temu. The Federal Association of Consumer Organizations (vzbv) in Berlin has warned the company because it is unsettling and taking advantage of consumers with questionable practices. The platform attracts with seemingly arbitrary discounts, questionable reviews and manipulative design, which, in the opinion of vzbv boss Ramona Pop, must be stopped in order to protect consumers from such business practices.

Whaleco Technology Limited is behind the online platform Temu and has responded to the warning, but has not yet issued a cease and desist declaration. The consumer advice center is now considering a lawsuit against Temu, with an internal coordination process underway to decide on this.

The vzbv accuses Temu of leaving consumers in the dark about how the high discounts come about. The platform also advertises that the carbon footprint is reduced by delivering to pickup points, even though the products travel long distances before they are delivered.

Temu defends itself against the allegations and emphasizes that the discounts shown are based on the prices that also apply in brick-and-mortar stores and that pickup points represent an environmentally friendly delivery option. The platform also emphasizes that it takes the validity of reviews seriously and does not suppress negative reviews, but rather provides special filters to improve product quality and merchant service.

Temu recently caused a stir with discount offers of up to 90 percent and quickly established itself on the German market. Experts and associations are calling for stricter action against Chinese low-cost marketplaces such as Temu, while European toy manufacturers have criticized the safety of products on the platform and called for stricter controls.