Violation of EU laws: consumer advice center warns Temu

Violation of EU laws: consumer advice center warns Temu

The Federal Association of Consumer Organizations (vzbv) recently issued a warning to the Chinese online retailer Temu. vzbv boss Ramona Pop explained that Temu unsettles and takes advantage of consumers with questionable reviews and manipulative designs. The company violates EU consumer protection laws and also engages in greenwashing. Specifically, Temu uses dark patterns to put pressure on customers, which has been banned since the EU Digital Services Act came into force in February.

Temu's greenwashing includes, among other things, advertising delivery to a pickup point as climate-friendly, even though most of the products come from China. In addition, the extremely high discounts and real-time product reviews at Temu are opaque and difficult to understand. The vzbv is therefore calling for better protection for consumers against these business practices and is considering a lawsuit against Temu as a next step. Temu's parent company, Pinduoduo, recently reported a near doubling of its profits, while Temu comes under fire for poor quality, non-received shipments and poor environmental performance of its products.

Temu is also in the spotlight of other countries, including France, which recently passed a law banning the advertising of bargain clothing and introducing an environmental tax on cheap items. These measures are intended to help curb questionable business practices and strengthen consumer protection.