The Federal Association of Consumer Organizations (vzbv) in Berlin has announced that it is considering legal action against Chinese online marketplace Temu for multiple violations. The platform has been accused of unsettling and taking advantage of consumers with arbitrary discounts, questionable reviews, and manipulative designs. vzbv boss Ramona Pop stated that these practices must be stopped to protect consumers.
Whaleco Technology Limited, the company behind Temu, has responded to the warning but has not made a cease and desist declaration. The consumer advice center is currently in the process of deciding on a lawsuit against Temu. The platform claims to be committed to ensuring fair practices and is open to working with consumer groups to improve transparency and cater to local preferences.
Recent discount offers of up to 90% by Temu have caused a stir in the market, making it the most downloaded shopping app in Germany according to Similarweb. Trade experts and associations have called for stricter actions against Chinese low-cost marketplaces like Temu, especially regarding the safety of products sold on the platform. In light of these developments, the consumer advice center is closely monitoring Temu’s practices and considering legal action to protect consumers’ rights.
Temu has faced criticism for not providing clear information on how the high discounts are offered and for pressuring consumers to make purchases with manipulative design tactics. The company defends its practices, stating that they reflect the real state of inventory and are intended to help consumers make informed decisions. Temu also takes the authenticity of reviews seriously and believes they can help retailers improve their product quality and service.
The ongoing investigation into Temu’s practices will play a crucial role in determining whether legal action will be taken against the platform. If Whaleco Technology Limited fails to address the allegations or cooperate with consumer groups, it could face serious consequences in Germany’s e-commerce market.
