Consumer advice center issues a warning to Temu

Amazon is still the undisputed top dog in the online marketplace sector. But the competition never sleeps. Low-cost providers from the Far East in particular are becoming increasingly popular. Temu is one of them. However, the retailer’s business practices do not appear to be above board. After all, the successful company based in China has now received a warning from the consumer advice center.

Temu is intended to cause uncertainty

The consumer protection agency is currently focusing on Temu. The Chinese low-cost marketplace scores points in this country with truly competitive prices that other retailers cannot match. But behind the shiny façade, there appear to be massive problems, as the chairwoman of the Federation of German Consumer Organizations (vzbv) Ramona Pop has now told the Funke Mediengruppe. According to the consumer advocate, Temu is causing increasing uncertainty among its customers.

Buyers are simply being “taken advantage of” with “seemingly arbitrary discounts, questionable ratings and manipulative designs”. At first glance, this may sound like a win-win situation for customers. But unfortunately this is not the case. After all, according to the federal association, Temu’s practices violate current legislation. The marketplace is now to abandon this. Among other things, the consumer associations are focusing on “dark patterns”.

Pressure on consumers due to “dark patterns”

Dark patterns are when sellers exert pressure on consumers with supposedly time-limited offers. Temu is a real pro in this respect. For example, the marketplace encourages its customers to hurry up with their purchase because a certain number of other customers already have the item in their shopping cart. In this way, the store fuels the fear that a product may be out of stock if it is not purchased quickly.

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As a result, many consumers find themselves under spontaneous pressure to buy. This is not compatible with current EU law. Pop clarifies: “In Germany and the European Union, there are laws to protect consumers that all companies must comply with.”. However, this is not the only problem that the consumer advocate has to complain about. In her view, Temu is also said to be “greenwashing” by making supposed promises about environmental and climate protection.

Is Temu facing legal action?

According to the retailer, shipping to a pick-up point is supposed to be “climate-friendly” in contrast to home delivery. However, as most of the products come from China anyway, the shipping method has hardly any impact on the environmental footprint. For Temu, however, the whole thing is important. After all, shipping to a pick-up address is likely to be significantly cheaper for the company. This is just one example of the company’s lack of transparency. According to consumer advocates, even the foundations of the online marketplace are difficult for consumers to understand.

Blinded by high discounts and supposedly good product reviews, consumers make purchases here even though they might have made different decisions without the corresponding pressure. Pop therefore advocates greater protection for consumers and stricter handling of Temu. The online mail order company could soon be threatened with legal action. This would be the next step following the warning. However, in view of the exuberant success of the low-cost marketplace, it seems rather unlikely that the basic concept will change.