European consumer groups call for probe into Chinese platform Temu
European consumer organizations want the European Commission to launch an investigation against the Chinese sales platform Temu. They accuse it of dealing with counterfeits and unapproved products and manipulating consumers, including pushing more expensive goods on them.
6:46 AM EDT, May 17, 2024
On Thursday, 17 European consumer organizations, including Poland's Consumer Federation, Belgian Testachats, and French UFC-Que Choisir, filed an official complaint with the European Commission against the e-commerce platform Temu.
The groups have called on the EC to launch an official investigation into the possibility that the platform is violating the EU's Digital Services Act (DSA). This act stipulates that products sold in the EU, both online and in traditional stores, must be safe and comply with European law.
Consumer organizations accuse the Chinese platform of selling counterfeits, illegal items in the EU, and potentially harmful products, such as cosmetics, without ingredient information. A test conducted in October last year by the Italian consumer organization Altroconsumo revealed that 9 out of 13 cosmetics purchased on Temu either did not contain ingredient information or only partially.
Unfair business practices
The groups also criticized the platform for not disclosing critical information about the sellers, preventing consumers from assessing whether their products meet EU safety criteria. EU regulations obligate e-commerce platforms to be transparent regarding the identity of sellers and the recommendation systems so that customers understand how particular items are displayed to them.
Temu does not guarantee its users a safe, predictable, and trustworthy online environment as the law requires, - wrote Monique Goyens, director of the European consumer organization BEUC, which unites national organizations, in a statement to the Polish Press Agency (PAP).
Organizations also accused Temu of employing unfair business practices to manipulate consumers. They refer to so-called dark patterns, interface designs aimed at coercing customers into purchases and actions, such as posting fake positive reviews of products, pushing more expensive goods, or artificially inflating prices only to discount them later. Temu also allegedly makes it difficult for consumers to close their accounts on the platform.
A market full of manipulative techniques
Goyens stressed that the authorities must stop illegal practices and disregard for consumers' interests.
She added that the online marketplace has manipulative techniques designed to get consumers to spend more on the platform. For instance, consumers who click on a particular product receive more expensive versions or must navigate a maze-like process to close their accounts.
Temu has 75 million users in the EU.
