Temu, a rapidly growing e-commerce application boasting over 75 million monthly active users within the European Union, is facing scrutiny over potential breaches of consumer protection regulations.
The influential European consumer rights organisation BEUC, along with national consumer protection bodies in several EU member states, have filed formal complaints against Temu.
The complaints allege that Temu employs “dark patterns,” a tactic utilising manipulative design elements to pressure users into unintended purchases.
Additionally, BEUC asserts a lack of transparency on Temu’s platform regarding:
Information pertaining to sellers and their products and the functioning of its product recommendation system.
These alleged practices contravene the provisions of the EU’s Digital Services Act (DSA), which mandates online platforms to remove illegal content, implement transparent data usage practices and ensure a safe online shopping environment for consumers.
Temu pledges cooperation
In response to the complaints, Temu has issued a statement expressing its commitment to taking the concerns “very seriously.”
The company has pledged to thoroughly investigate the allegations and cooperate fully with relevant stakeholders.
Temu emphasises its dedication to transparency and adhering to all applicable laws and regulations.
Broader international scrutiny
Similar concerns regarding consumer protection have been raised against Temu by German consumer advocacy groups earlier this year.
Regulatory authorities in South Korea have initiated investigations into Temu, suspecting potential false advertising and unfair business practices.
Temu is anticipated to be added to the EU’s designated list of “very large” digital platforms under the purview of the DSA.
This classification entails stricter compliance requirements, including the mandatory submission of regular reports outlining measures taken to mitigate potential risks on the platform.E-commerce platform. e-commerce application, consumer protection regulations, dark patterns
