Consumer protection: UBA takes action against Chinese low-cost online marketplace Temu

Coordinated action with other EU countries due to unfair business practices

Kartons und geöffnete PaketeClick to enlarge
Packaging waste: the EU takes action against the online marketplace Temu
Source: Wakko / stock.adobe.com

The online marketplace Temu puts consumers under pressure when making a purchase decision, for example by spreading false information about the duration of discount campaigns or the number of products still available. Such aggressive and misleading commercial practices are prohibited in the European Union. For this reason, the CPC network of European consumer protection authorities, co-led by the German Environment Agency (UBA), is taking action against the company. In a joint letter, the consumer protection authorities call on Temu to cease its violations of European law as soon as possible. If the company does not cooperate, further measures – such as the imposition of fines – may follow.

UBA President Dirk Messner said: “Cheap platforms like Temu are not concerned with sustainable consumption. They use unfair means to constantly create new incentives to buy. We are committed to ensuring that consumers are not put under unfair pressure when making their purchasing decisions.”

In July 2024, the EU authority network CPC (Consumer Protection Cooperation) launched a coordinated action against Temu. This was preceded by a warning from the consumer protection authority in Ireland, where the Chinese company has its European headquarters. Among other things, the CPC authorities accuse Temu of making it unnecessarily difficult for its customers to exercise their right of withdrawal and of using manipulative website designs. The action is also directed against allegedly falsified consumer reviews (so-called fake reviews), aggressive marketing with gambling elements and misleading information on minimum order values and price reductions.

Temu is now being asked to voluntarily submit commitments to cease violations of European consumer law in consultation with the coordinating authorities from Germany, Ireland and Belgium. Consumers in all EU member states would benefit from these commitments. If the sales platform does not cooperate, the CPC network can also enforce consumer protection laws against the company’s will and consistently punish violations, for example by imposing fines.

Further information

Misleading and aggressive commercial practices fall within the scope of the Unfair Commercial Practices Directive 2005/29/EC. In particular, commercial practices are misleading if they contain false information that may deceive consumers.

Important rights that consumers can invoke within the EU are regulated in Directive 2011/83/EU on consumer rights  These include, for example, the right of withdrawal for online contracts or the right to receive all important information about the goods and their seller before concluding the contract.

The UBA is responsible for the cross-border enforcement of the collective interests of consumers. However, the UBA has no powers to enforce individual consumer claims. Rather, its aim is to uncover and remedy abuses and violations by companies operating throughout Europe. All consumers benefit from this as part of the wider community.

Umweltbundesamt Headquarters

Wörlitzer Platz 1
06844 Dessau-Roßlau
Germany

Share:
Article:
Printer-friendly version
Tags:
 consumer protection  e-commerce  Temu  European Commission. packaging waste