The European Union’s Consumer Protection Cooperation Network (CPC Network) has requested information from Chinese e-commerce giant Temu after detecting practices that violate EU consumer protection law. Among them, false discounts, misleading information or pressure sales, such as when it claims that there are a limited number of products for sale to motivate the purchase. Remember that Brussels is already investigating Temu for suspicion of online sales of illegal products.
Red CPC is formed, among others, by national consumer protection authorities, including the General Directorate of Consumer Affairs of the Spanish government, and its investigations are coordinated by the European Commission.
Red CPC sent a notification to the online sales platform, as explained by the Ministry of Social Rights, Consumer Affairs and the 2030 Agenda, in which it warns Temu that it has detected commercial practices “that could contravene European consumer protection legislation. .”
The aim of the Communication and this process is to “ensure a safe and reliable online environment in which the rights of European consumers are respected”. The CPC network specifies that it has “detected a wide range of practices that consumers encounter when shopping at Temu”. Among them, “techniques likely to mislead consumers or unduly influence their purchasing decisions” and, in addition, it examines whether “Temu complies with the specific information obligations of online markets in accordance with the legislation on consumption.
Among the practices it has identified, “false discounts” stand out, through which the false impression is given that products are offered with a discount when in reality there is none. There is also “pressure selling,” in which “tactics such as false claims about limited product inventory or false purchase deadlines are used to pressure consumers into making their purchase.”
Other practices rely on the “gamification” of shopping, “whereby consumers are forced to play “roulette of fortune” to access the online market, while hiding essential information about the related terms of use at the game.” And, in the “lack of information or misleading information about the legal rights of consumers to return products and receive refunds, in addition to not informing consumers in advance that their order must reach a certain minimum value before being able to finalize their purchases.”
If you do not cooperate, sanctions may be imposed
In addition, Red CPC also highlights the identification of “fake reviews”, “when the company does not provide adequate information on how it guarantees the authenticity of the reviews published on its website, and one may suspect that there are reviews that are inauthentic” and “hidden contact details”, making it difficult for consumers to easily contact Temu with questions or complaints.
After detecting these actions, “Red CPC requested information from Temu to assess the company’s compliance with other obligations arising from European consumer protection legislation, including the obligation to clearly inform consumers if the seller of a product is a merchant or not. » Additionally, it requires you to ensure that “product ratings, reviews and ratings are not presented to consumers in a misleading manner; that price reductions are correctly advertised and calculated; and ensure that all environmental claims are accurate and substantiated.
From now on, “Temu now has one month to respond to the conclusions of the CPC network and propose commitments on how it will address the problems identified in terms of consumer law,” explains the ministry. And the door opens to sanctions. “Depending on Temu’s response, the CPC network could initiate a dialogue with the company. If Temu does not address the concerns raised by the CPC network, national authorities could take enforcement action to ensure compliance.
