• Wed. May 29th, 2024

German consumer advocacy group may take legal action against low-cost Chinese app Temu


Mar 26, 2024

In Germany, the official consumer advocates from the consumer advice center are considering legal action against the Chinese online marketplace Ago. The company has been warned for multiple violations, as announced by the Federal Association of Consumer Organizations (vzbv) in Berlin on Tuesday. The platform has been accused of unsettling and taking advantage of consumers with arbitrary discounts, questionable reviews, and manipulative designs. Vzbv boss Ramona Pop stated that this kind of business practice must be stopped in order to protect consumers.

Whaleco Technology Limited, the company behind the online platform, has reportedly responded to the warning but has not made a cease and desist declaration. The consumer advice center is now contemplating a lawsuit against Temu. A spokesperson mentioned that an internal coordination process is currently underway to make a decision.

Temu, on the other hand, feels misunderstood by consumer advocates and claims to be committed to ensuring fair practices. The company expressed willingness to work with consumer groups to improve transparency and tailor the platform to local preferences.

The vzbv has criticized Ago for various reasons, including lack of transparency on how high discounts are offered and misleading information about reducing CO2 footprint by delivering goods to pickup points instead of homes. Temu defended itself by stating that many sellers are manufacturers who provide goods to traditional stores and base their prices on those in stores. They also highlight the environmental benefits of delivering goods to pickup points.

The consumer advice center also raised concerns about manipulative design on the platform, such as pressure tactics during ordering and lack of information about product providers and reviews. Temu refuted these allegations, stating that their inventory and purchase updates are intended to help consumers make informed decisions and that they take authenticity of reviews seriously.

Temu gained attention with discount offers of up to 90 percent and quickly established itself in the German market. Trade experts and associations have called for stricter action against Chinese low-cost marketplaces like Temu. European toy manufacturers have also criticized the safety of products from retailers on the platform and have called for stricter controls on these products.

By editor

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