The CPC Network has instructed Temu to align its operations with EU consumer laws. An ongoing investigation into Temu is in progress, and the company has been asked to supply additional information to the network.
This action against Temu is led by national authorities from Belgium’s Directorate General for Economic Inspection, German Environment Agency, and Ireland’s Competition and Consumer Protection Commission, with oversight from the EC.
The investigation by the CPC Network encompasses various practices that consumers encounter while using Temu, including those that may mislead or improperly influence purchasing decisions.
Additionally, the CPC Network is assessing whether Temu meets specific information obligations for online marketplaces a mandated by consumer law. National consumer authorities from 27 EU Member States along with Norway and Iceland form the CPC Network.
Key aspects of the CPC Network's coordinated initiative include:
The identification of several problematic practices on Temu that are deemed breaking of EU consumer protection laws, such as:
- Fake discounts: Creating a false impression of discounts where none exist.
- Pressure selling: Using tactics like false claims of limited stock or purchase deadlines to pressure consumers into buying.
- Forced gamification: Requiring consumers to engage in games like 'spin the fortune wheel' to access the marketplace while concealing essential information about game conditions.
- Missing and misleading information: Providing incomplete or incorrect information about legal rights related to returns and refunds. Additionally, failing to disclose minimum order values required for purchases.
- Fake reviews: Offering insufficient information on how review authenticity is ensured; some reviews are suspected of being fake.
- Hidden contact details: Making it difficult for consumers to contact Temu for inquiries or complaints.
Temu has one month to respond to the CPC Network's findings and propose solutions to address these issues. Depending on its response, further dialogue may occur.
If concerns remain unaddressed, national authorities could implement compliance measures, potentially imposing fines based on Temu’s annual turnover in relevant Member States. This action does not affect ongoing enforcement measures by national authorities.
European Commission Values and Transparency vice-president Věra Jourová explained "ensuring safety of consumers in the EU is a priority for the commission".
Jourová continued: "Therefore, adherence to our consumer protection standards by the trading companies is non-negotiable. The dedication and coordinated efforts of national authorities play a vital role in ensuring a fair and secure market for everyone.
“We have shared our concerns with Temu and we urge Temu to promptly bring its practices into full compliance with EU consumer protection rules.”
A Temu spokesperson tells Just Style: "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.
The spokesperson adds: "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."
On 31 May 2024, Temu was designated as a Very Large Online Platform (VLOP) under the Digital Services Act (DSA). Four months post-designation, Temu was required to adhere to stringent VLOP obligations.
Following a preliminary investigation, formal proceedings were opened on 31 October 2024, to assess potential DSA breaches related to risk management, transparency of recommender systems, and data access for researchers.
