The Competition and Consumer Protection Commission (CCPC) has launched an investigation into the popular online marketplace Temu over concerns of potential breaches of consumer protection laws. The probe is being conducted in collaboration with Belgian and German consumer authorities, under the European Commission’s Consumer Protection Cooperation (CPC) Network.
Temu, which has become well-known for offering heavily discounted products primarily manufactured in China, has its European headquarters based in Dublin. The CCPC has flagged several practices on the platform that may violate EU consumer rights. According to the CPC Network, these practices include misleading discount schemes, deceptive countdown timers, and unclear or misleading information regarding product details, sellers, and consumer rights.
Kevin O’Brien, a member of the CCPC, emphasized the seriousness of the issue, stating, “These practices could undermine consumers’ ability to make informed decisions on where and how to spend their money.”
He added that large online marketplaces like Temu must adhere to EU consumer laws, and the CCPC is committed to working with the company to resolve these concerns. “We look forward to engaging constructively with Temu during this investigation,” O’Brien said.
In response, Temu acknowledged the concerns raised by European regulators. A company spokesperson said, “Temu is fully aware of the issues flagged by the European Commission and national consumer authorities. We are committed to working with the relevant regulators to address any concerns and ensure compliance with EU laws.”
The spokesperson further noted that while Temu has grown rapidly in the European market, having been active in the EU for less than two years, the company is “actively learning and adapting to local requirements.” They assured that Temu would fully cooperate with the investigation, stressing that scrutiny benefits both consumers and merchants in the long run.
As part of the investigation, the CCPC has requested information from Temu to assess its compliance with key aspects of EU consumer law, including discount calculations, product rankings, the authenticity of reviews and ratings, trader identification, and claims regarding environmental practices.
Temu has been given one month to propose commitments outlining how it plans to address the identified issues and bring its practices in line with EU regulations. The outcome of the investigation could result in further action if the company is found to be in violation of consumer protection laws.
