Temu still in the crosshairs of EU Commission for violation of consumer protection

Brussels – Online trading company Temu again in the eye of the EU storm: After investigations into the violations of the Digital Services Act (DSA), it is now the turn of the protection regulations. The coordinated work of the European Commission and the Consumer Protection Cooperation Network has uncovered the presence of practices that are likely to be contrary to EU rules, for which Temu will have to answer.

The CPC Network has identified a number of elements that openly contrast with the reference European legislation, EU Regulation 2017/2394. It certainly does not protect consumers the presence of untrue discounts or “pressure selling,” with false claims about limited supplies or false purchase deadlines inviting them to finalise the purchase quickly. Even less regular is the so-called forced “gamification”, that is, forcing consumers using the Temu site to participate in fake “wheels of fortune” to enter the site and win promotions and discounts.

Moreover, the consumer’s right to return and receive refunds is reportedly not be respected, with little information available (often misleading, by the way), and it appears to be impossible to interact directly with the company, as contacts are hard to find. The presence of reviews that the national CPC authorities part of the investigation suspect to be false— whereby the qualities of products are bragged about misleading consumers—is serious.

In addition, the Chinese online retail giant has been asked to comply with other parts of the EU Regulations as well, such as ensuring that all environmental claims are accurate and substantiated.

Temu has one month to defend itself against the allegations of the CPC Network and come up with a strategy on how to protect consumers while complying with the rules of EU law. It is not a given that it will be able to convince the EU executive and the “watchdogs” of consumer protection. There are two possibilities: if Temu proposes a convincing solution for the CPC Network, a mediation dialogue will be opened with the company. If European demands are not considered, national authorities can take measures to ensure compliance, such as fines on the company’s annual turnover.