Ireland’s consumer protection regulator has announced that it has launched a joint investigation into the online marketplace, Temu.
The popular Chinese site is used by more than 45 million people per month in the EU, according to the European Commission.
Temu’s European base is in Dublin.
Ireland’s Competition and Consumer Protection Commission (CCPC), along with Belgian and German consumer authorities, are scrutinising Temu for potential breaches of consumer protection law.
The CCPC says it has “identified practices which may mislead consumers or unduly influence their purchasing decisions.”
Several “problematic practices” have been identified, the regulator says. These are now being investigated:
- Fake discounts: Giving consumers the false impression that products are discounted when they are not.
- Fake pressure: Putting consumers under pressure to complete purchases using tactics like false claims about limited supplies of products or false purchase deadlines.
- Missing and misleading information: Displaying incomplete and incorrect information about consumers’ legal rights to return goods and receive refunds. Failing to inform consumers in advance that their order needs to reach a certain minimum value before they can complete their purchase.
- Fake reviews: Giving inadequate information about how Temu ensures that reviews published on its website are genuine. National authorities identified reviews which they suspect to be fake.
- Hidden information: Forcing consumers to play a ‘spin the fortune wheel’ game to access the online marketplace, while hiding essential information about the conditions of use that apply to the rewards of the game.
In a statement, a Temu spokesperson responded:
“Temu acknowledges the concerns raised by the European Commission and national consumer authorities and reiterates our commitment to working closely with the relevant regulators to address any issues and ensure compliance with EU laws.
Although we have gained popularity with many consumers in a relatively short time, we are still a very young platform — less than two years in the EU — and are actively learning and adapting to local requirements. We will fully cooperate with this investigation, as we believe that such scrutiny benefits consumers, merchants, and the platform in the long term.”
The company now has one month to respond to the investigation and propose how they will address any breaches of EU consumer law.