European consumer groups accused Chinese e-commerce giant “Pinduoduo” on Thursday (May 16) of using “manipulative techniques” on its cross-border platform Temu to force users to spend more money, as well as other violations of the EU’s “Digital Services Act.”
Temu entered the EU market in April 2023 and has since become one of the fastest-growing applications. Temu claims to have an average of 75 million monthly active users in the 27 countries of the EU.
The European Consumer Association (BEUC) has lodged a complaint with the European Commission. 17 BEUC member organizations in countries such as France, Germany, and Spain have also filed similar complaints with their respective governments.
These groups accuse Temu of “failing to protect consumers and using illegal manipulation techniques,” namely “dark patterns,” and are calling for authorities to launch an investigation.
They allege that Temu distorts or impairs consumers’ ability to make “free and rational decisions” when shopping online, and violates the EU’s “Digital Services Act” (DSA).
According to the Digital Services Act, all digital platforms must quickly remove illegal content, disclose how user data is used, and ensure the safety of online shoppers.
BEUC stated that Temu does not provide sufficient information about platform traders, often leading to consumers being unclear about who they are buying products from.
This is not the first time Temu, under Pinduoduo (PDD Holdings Inc), has faced pressure in Europe.
Earlier this year, a German consumer protection group warned Temu about similar issues, after which Temu announced that it would no longer display notifications urging consumers to “hurry and place an order! Over 126 people have added this item to their shopping carts.”
Temu is also under strict scrutiny in other regions, including Asia and the United States.
In April this year, Temu was investigated by the Korea Fair Trade Commission (KFTC) for false advertising and unfair business practices.
(Source: Central News Agency)