Shopping at Temu: Buying is done despite known risks

Temu is booming despite known risks: Why low prices and tempting offers attract buyers, and which dangers are often overlooked.

In recent years, Temu has shot like a rocket into the e-commerce sky – despite known risks and dangers.

Photo: Dominik Hochwarth

No other shopping app recorded as many downloads in Germany last year as Temu. It is estimated that up to 200,000 packages are sent to German customers every day from the Chinese online platform. What makes Temu so attractive are the extremely low prices and the huge range of products. But behind the tempting facade there are dangers that consumer advocates and experts warn about. Lack of product safety, questionable quality standards and possible data protection problems are just some of the critical points that potential buyers should be aware of.

The rise of Temu: What is behind the success?

Temu is a subsidiary of Chinese e-commerce giant Pinduoduo and was founded in 2015. The platform offers a huge range of products, from electronics to clothing, toys and home appliances. Temu’s aggressive marketing strategies have proven to be extremely successful.

The app locks in constantly changing discounts, coupons and legal. These price wars and the ability to purchase products at a fraction of the regular price have made Temu one of the most popular shopping apps in a very short time.

Most of the products on Temu come directly from manufacturers in China. This means there are costs for middlemen and expensive warehouse logistics. Another reason for the low prices: Customs duties are usually waived for products under 150 euros, which further reduces shipping costs. These factors contribute significantly to Temu being able to offer unrivalled low prices.

Quality and safety: Consumers should remain skeptical

While Temu scores with low prices, there are significant shortcomings in the quality and safety of the products offered. According to a GfK survey commissioned by the Central Association of Electrical and Electronic Manufacturers (ZVEI), more than two thirds of buyers are aware that the products purchased from Temu often do not meet European standards. This applies to both product safety and compliance with regulations on ingredients and occupational health and safety.

The problem is particularly evident in electrical goods and toys, where missing or fake CE markings are commonplace. The CE marking signals that a product complies with EU safety standards. However, in Temu’s case, these markings are often missing or have been manipulated. This increases the risk for consumers of buying defective or even dangerous products.

Sustainability: Affordable, but at what price?

Another critical aspect of shopping on Temu is the question of sustainability. The platform mainly offers cheap products that usually have a short lifespan. These disposable products contribute to the growing waste problem and are contrary to the pursuit of greater sustainability. In addition, even the smallest items are often delivered individually by air freight from China, which increases the CO₂-Emissions are increased and the environment is subjected to additional strain.

Temu claims to be committed to social responsibility and CO₂emissions, but there is little transparency or evidence to support these claims. Experts such as Christoph Tripp, Professor of Trade Logistics at the University of Nuremberg, are sharply critical of the business model. He stresses that social and environmental sustainability play only a minor role at Temu and are used more as a marketing tool than actually implemented.

Data protection: What data does Temu collect?

Privacy is another area where Temu raises concerns. The application requires extensive permissions and requests access to users’ personal data such as photos, videos, address book and even Wi-Fi data. Although Temu stresses in its privacy policy that data security is important and that European customers’ data is stored in the infrastructure of cloud providers in the European Economic Area (EEA), there is reason for skepticism.

Security analyses and expert opinions such as those from “c’t Magazine” are critical of the app. It is described as a potential “bug” that collects extensive data and may use it for commercial purposes. Users should therefore be aware that by downloading the app and using the platform they are disclosing extensive information that can be used for marketing and possibly other purposes.

Returns and customer service: where things go wrong

Temu advertises a customer-friendly return policy: returns are supposed to be free of charge, and the purchase price is refunded if returned within 90 days. But the reality is often different. On review platforms such as Trustpilot, customers report problems with refunds. Many buyers had to fight for their money and some even reported that they were refused the money altogether.

Customer service is also frequently criticized. Users report that when they have problems they often only receive automated answers from chatbots and that it is difficult to resolve their concerns. This leads to frustration and mistrust among customers and raises the question of how seriously Temu really takes its promise of customer satisfaction.

Legal aspects: The buyer’s responsibility

Purchasing from Temu can also have legal consequences. Since the products are imported directly from China, the buyer legally assumes the role of the importer. This means that the buyer can be liable for any damage or defects caused by the purchased product. For example, the risk of fire or injury from defective electrical devices can lead to serious legal problems.

Counterfeit products are also not uncommon on Temu. Since customs do not usually carry out detailed checks on goods worth less than 150 euros, there is a risk that counterfeits or inferior imitations will enter the country. If large quantities of counterfeit goods are discovered, this can even lead to criminal prosecution if there is suspicion of commercial trade.

The Digital Services Act: A challenge for Temu

The EU’s Digital Services Act (DSA) provides a legal basis to hold large online platforms like Temu accountable. The DSA requires “very large online platforms” to provide risk analyses and take measures to protect consumers. ZVEI supports these regulations and calls for strict implementation to ensure fair competition and prevent violations of product safety and compliance.

Temu’s business practices are also increasingly concerning local companies. In the current ZVEI survey of members of the consumer industry, 72% stated that they were already affected by Temu’s market activities in Europe. Almost all companies (92%) also assume that the situation will become even more serious due to such online platforms. They see the lack of product safety (92%) and conformity (80%) as particularly problematic, as well as the sale of products containing prohibited substances (64%).

Carine Chardon, Head of Consumer at ZVEI, stresses that politicians and authorities are required to create equal conditions for market access. Better equipment for market surveillance and customs authorities is necessary in order to effectively protect consumers and ensure fair competition for all market participants.

Conclusion: Tempting prices, but don’t underestimate the risks

Temu has established itself as a cheap shopping platform in Germany. However, the significant price advantage often comes at the expense of safety, quality and sustainability. Consumers should be aware of the risks and think carefully about their purchasing decisions. It is worth taking a closer look before falling for tempting offers. Not only the quality of the products, but also data protection and possible legal consequences should be taken into consideration. If you buy cheap, in the worst case scenario you will not only buy twice, but also expose yourself to risks.

Temu’s booming sales show that the appeal of low prices is great. But for both consumers and the industry in Europe, it is crucial that not only price, but also safety and fair competition are the focus. This is the only way to create a sustainable and trustworthy shopping environment that meets both the interests of customers and the requirements of product quality and consumer protection.

topicnews · September 3, 2024

Shopping at Temu: Buying is done despite known risks

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