2024-05-14 11:51:43
The Federal Association of Consumer Organizations had warned Temu for several violations. Now the online shop company is vowing to make improvements.
In March, the Federal Association of Consumer Organizations (vzbv) warned the cheap shop Temu. The vzbv had accused the platform of, among other things, a manipulative design and non-transparent pricing.
And Temu actually gave in. As the consumer advice center announced in a recent press release, the company has issued a cease and desist declaration. In this, the platform undertakes to refrain from the violations complained of by vzbv in the future.
Ramona Pop, board member of the Federal Association of Consumer Organizations, explains that Temu’s cease-and-desist declaration “avoids a lengthy legal process.” However, the vzbv will continue to “keep an eye on the online marketplace,” said Pop.
Temu website design is “manipulative”
The consumer advice center’s allegations included, among other things, the non-transparent pricing and the manipulative design of the website. As the vzbv explained in its original press release, Temu offers high discounts of up to 70 percent – without giving customers a reference price.
Potential buyers receive numerous pop-ups and notices on the website to encourage them to purchase. Temu promises discounts if a certain number of products are purchased or the newsletter is subscribed to. Warnings that an item is about to sell out or that the supposed discount is about to expire also put consumers under pressure.
Such manipulative designs, also known as “dark patterns”, have been banned in the EU since February 17, 2024 under the Digital Services Act, as the vzbv explained in its announcement. The association had also criticized that Temu did not provide sufficient information about how the authenticity of product reviews should be ensured. There have already been suspicions in the past that reviews of the shop – including on sites like Trustpilot – were fake.
Temu pretends to be sustainable
There is also a lack of information about the identity of the product providers. Temu acts as an online marketplace. This means that the company is a kind of intermediary between customers and dealers. The latter are very often based in China.
And there is another marketing trick that the consumer advice center objected to. Temu advertises that customers can reduce their carbon footprint if they have their order delivered to a pickup station instead of directly to their home. However, since many items come from China or other distant countries, “the products have already traveled a long way before they are delivered,” according to the vzbv.
Regarding the warning, Ramona Pop explained that “consumers must be protected from such business practices.” The consumer advice center generally advises caution when shopping at Temu. You can read why here.