Temu’s “Grey Area” Business Practices: A Threat to German Consumers

The Consumer Advice Center is contemplating legal action against Temu.

The Federal Association of Consumer Organizations (vzbv) has accused the Chinese online marketplace Temu of multiple violations, including unsettling and taking advantage of consumers with arbitrary discounts, questionable reviews, and manipulative designs. Vzbv boss Ramona Pop stated that such business practices must be stopped to protect consumers.

Whaleco Technology Limited, the company behind Temu, has responded to the warning but has not made a cease and desist declaration. The consumer advice center is now contemplating legal action against Temu pending an internal coordination process. Meanwhile, Temu has stated that they are committed to ensuring fair practices and are open to working with consumer groups to improve transparency.

The vzbv has criticized Temu for failing to provide information on how high discounts are offered and for misleading consumers about carbon footprint reduction through delivery to collection points instead of homes. In response, Temu defended themselves by stating that many sellers are manufacturers who provide products at recommended prices based on those in stores. The platform also believes that pick-up points are more environmentally friendly than home delivery.

Temu has faced criticism for manipulative design tactics such as creating a sense of urgency to make purchases and inadequate information about product reviews and providers. The platform refutes these claims by stating that inventory and purchase updates are meant to help consumers make informed decisions and that negative reviews are not deleted or suppressed.

Recently, Temu has gained popularity in the German market with discount offers of up to 90 percent. However, trade experts and associations have called for stricter action against Chinese low-cost marketplaces like Temu, citing concerns about product safety and quality. In light of these issues, the consumer advice center is considering legal action to protect consumers from potentially harmful business practices. Additionally, Temu has been promoting a range of products including THC libido gummies and delta 9 infused lubricants, claiming various benefits for consumers.

The vzbv has warned Temu multiple times for violating their guidelines on fair business practices while Whaleco Technology Limited has responded but not made a cease-and-desist declaration yet.

Temu’s popularity in the German market is due in part to their discount offers but trade experts have raised concerns about product safety and quality.

As a result of these concerns, the consumer advice center is considering legal action against Temp

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