Temu faces authorized problem over ‘manipulative practices’

Temu is going through a contemporary authorized grievance filed by 17 firms within the European Union.

The Chinese on-line retailer is accused of “failing to protect consumers” and “utilizing manipulative practices that are unlawful below current EU laws”, in response to shopper group BEUC.

Temu was solely launched in September 2022, however has rapidly change into probably the most standard on-line marketplaces worldwide.

In the UK, it was probably the most downloaded app in 2023 however it’s now going through difficulties within the EU.

The authorized grievance alleges the corporate is breaking new guidelines that imply regardless of the place the corporate is predicated, merchandise should adjust to European legislation in the event that they promote to European customers.

Consumer group Which? discovered weapons on the market on {the marketplace} and heaters that “could explode” however now warns UK firms would not have the power to problem the Chinese retailer.

“It is positive to see other consumer groups across Europe joining together to hold Temu to account for failing to prevent unsafe products ending up in people’s homes,” stated Which’s director of coverage and advocacy Rocio Concha.

“However, the UK risks being left behind as weak consumer protection laws make it more difficult to take effective action against Temu and other online marketplaces.”

The authorized grievance accuses the corporate of “manipulative practices” like making it tougher to delete your account than to set it up, and deceptive prospects on pricing.

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It additionally accuses Temu of permitting a few of its merchants to be untraceable by customers, which is in opposition to EU legal guidelines.

“Temu fails to know the traders selling on its platform and may not be in a position to ensure that all the products sold by those traders comply with EU standards,” reads the grievance.

It additionally alleges Temu just isn’t clear sufficient about why sure merchandise are advisable to customers, which can be in opposition to EU legislation.

Temu instructed Sky News in an announcement: “Our commitment to compliance and our willingness to engage stakeholders globally can be seen in our proactive actions.

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“In the previous week, Temu entered a cease-and-desist declaration with Germany’s [Federation of German Consumer Organisations], committing to addressing issues raised about our practices.

“Additionally, on Monday, Temu signed a product security pledge with South Korea’s Fair Trade Commission, committing to a complete system to detect, forestall, and take away unsafe merchandise from circulation.

“Regarding the BEUC complaint, we take it very seriously and will study it thoroughly. We hope to continue our dialogue with the relevant stakeholders to improve Temu’s service for consumers.”