European consumer groups are accusing the Chinese shopping app Temu of employing “manipulative techniques” to coerce users into spending more and other breaches of a significant EU tech law. Temu, which rapidly gained popularity after entering the EU market in April 2023, claims an average of 75 million monthly active users across the bloc’s 27 countries. The BEUC, a coalition of European consumer rights organizations, has lodged a complaint with the European Commission, while 17 member organizations, spanning countries like France, Germany, and Spain, have lodged similar complaints with national authorities.
These groups allege that Temu fails to safeguard consumers and engages in illegal manipulative practices, known as dark patterns, which compromise users’ ability to make informed and independent purchasing decisions online. They argue that Temu’s actions violate the Digital Services Act (DSA), a comprehensive EU law governing online content, by distorting or obstructing consumers’ ability to freely navigate online shopping.
According to the DSA, digital platforms are required to promptly remove illicit content, increase transparency regarding user data usage, and ensure the safety of online shoppers. However, BEUC asserts that Temu falls short in providing sufficient information about its merchants, often leaving consumers unaware of the entities they’re purchasing from. Additionally, Temu’s recommendation system lacks transparency, which is a DSA mandate.
Temu, owned by China’s PDD Holdings, has faced previous pressure in Europe, prompting it to alter its practices. German consumer groups raised concerns earlier this year, leading Temu to discontinue notices pressuring consumers with messages like “Hurry up! Over 126 people have this item in their shopping cart.” The platform has also faced scrutiny in Asia and the United States.
South Korean regulators initiated an investigation into Temu in April over allegations of false advertising and unfair practices. The EU is anticipated to designate Temu as a “very large” digital platform under the DSA, subjecting it to stricter regulations, including mandatory reporting on risk mitigation measures. Brussels has already included Chinese-founded online retailer Shein on this list, alongside other major platforms like AliExpress, Amazon, Facebook, Instagram, and YouTube.
