The Commission and national consumer
authorities have found that Temu engages in illegal practices like fake
discounts and misleading reviews. Already under DSA investigation, Temu has one
month to respond to these accusations.
The European Commission has warned Chinese retail giant
Temu to fix deceptive commercial practices or face potential fines in a report
following a probe by the Consumer Protection Cooperation Network, led by
Belgium, Germany, and Ireland.
The report finds that Temu engages in hard selling by
offering bogus discounts and hyped reviews. The company issues misleading
information, including exaggerating the availability of items and fostering
sales urgency with deadlines, it found. Authorities stressed that Temu fails to
properly inform users of their right to return products and does not provide
clear contact details for complaints.
Additionally, consumer authorities criticised Temu’s use
of a “spin the fortune wheel” game, where no clear information is given about
the conditions or rewards.
Temu has been given one month to respond to the Commission
and outline how it plans to correct these practices. If the response is
unsatisfactory, the company could face substantial fines. “It is very
positive to see two sets of enforcement authorities working together to address
Temu’s failings. If Temu does not comply immediately, authorities are going to
have to show their teeth and start imposing big fines,” said Agustín
Reyna, director-general of the European consumer organisation BEUC.
Kindle Unlimited Unlimited Reading. Unlimited Listening. Any Device.
“This decision piles yet more pressure on Temu to comply with the law.
It is unacceptable that Temu sends a tsunami of products to the EU, which
clearly include unsafe toys or electrical goods, and in complete disregard of
both consumer law and the recent Digital Services Act," Reyna added,
This investigation runs parallel to formal DSA
proceedings announced last week, which relate to similar alleged
harmful practices by Temu, and the addictive nature of its platform.
Temu attracts around 45 million visitors each month
across the EU.
From Euronews
Become fluent in any language :Take customizable 1-on-1 lessons trusted by millions of users (Click here)
Comments
Post a Comment