TapTechNews May 27th news, according to Sky News on May 16th, the European Consumers' Organization BEUC, which represents 45 regional consumer protection groups in EU countries, said that the overseas version of Pinduoduo, "Temu", was complained by consumer organizations in 17 EU member states for failing to protect consumers and using "illegal manipulation means" that violate the latest EU legislation to force consumers to spend more.
It is known that Pinduoduo officially went overseas in September 2022, and the overseas App was named "Temu". On April 21, 2023, Temu officially launched in the UK, and then rapidly expanded among 27 EU countries such as Germany, France, Italy, the Netherlands, New Zealand, and Spain, with an average of about 75 million active users per month. Currently, its business scope has covered 50 countries and regions around the world.
The BEUC consumer rights protection organization in Europe filed a complaint with the European Commission, and 17 European member organizations including France, Germany, and Spain also filed the same complaint with the national authorities. They accused Temu of "failing to protect consumers and adopting illegal manipulation means".
1. The platform fails to provide sufficient information about Temu merchants, "consumers often don't know from whom they are buying products and may not be able to ensure that all products sold by these merchants meet EU standards".
2. The information about how the platform's product recommendation system operates is not transparent enough to explain to consumers the reasons for the recommendation.
1. The platform distorts or weakens the ability of consumers to make "free and informed decisions" when shopping online.
2. It is difficult for users to cancel their platform accounts.
3. The platform misleads customers in product pricing.
Some of the above problems have already been suspected of violating the EU's huge online content law, namely the Digital Services Act, which requires all digital platforms to quickly delete illegal content, be more transparent about how they use user data, and ensure the safety of online shoppers.
It is known that Temu signed a cease-and-desist statement with the Federation of German Consumer Organizations and promised to address related concerns. The company issued a statement, saying that it is a "newcomer" in the region and has been listening to the feedback from customers, regulators, and consumer groups, claiming that it has been adjusting its operating methods to meet local expectations.
"Regarding the complaint from BEUC, we take it very seriously and will conduct a thorough study on it," Temu also wrote. "We hope to continue the dialogue with relevant stakeholders to improve Temu's service to consumers. When we determine the areas that need improvement, we will work together and strengthen the service to correct any mistakes. We focus on the interests of consumers, strive to provide safe and reliable services, be valued by consumers, and add significant value. We are committed to increasing transparency and fully complying with all applicable laws and regulations."