March 27, 2024, 4:19 pm | Read time: 9 minutes

Temu’s first impression is overwhelming: Everything is colorful, excessive, incredibly cheap–thanks in part to the rampant use of discount codes. Temu is doing everything to make its advertising slogan “Shop like a billionaire” a reality. It seems Temu offers just about everything you might (or might not) need for the kitchen, kids’ room, wardrobe, or various hobbies. And all at absurdly low prices. However, what may seem like a shopping paradise to some is a significant risk for consumers, according to the Federation of German Consumer Organizations. Therefore, the consumer protection agencies have issued a warning to Temu.

Ramona Pop, chairwoman of the vzbv, commented: “In Germany and the European Union, there are laws to protect consumers that all companies must adhere to. The Temu platform unsettles and disadvantages consumers with seemingly arbitrary discounts, questionable reviews, and manipulative designs, which must stop. Consumers need to be protected from such business practices.”

A Marketplace for Everyone

Unlike Amazon, Temu is purely an online marketplace and does not act as a seller itself. When you buy a product, you enter into a contract with an external vendor. This significantly reduces costs for sellers because the products often come directly from the factory and are shipped by the seller without involving a middleman. The discount shopping platform Wish operated with the same concept until massive revenue declines and losses followed starting in 2021.

But “Temu is perfectly tailored to the way young people shop today,” says WDR digital expert Jörg Schieb. Temu attracts with minimal effort, low prices, and an almost endless selection. However, there are also risks for consumers. Additionally, the Federation of German Consumer Organizations sees several violations of European law. These include non-transparent discount promotions that mislead customers because they do not provide further information on the original reference price.

Dark Patterns, Greenwashing, and Other Violations

Temu also uses so-called dark patterns. These are manipulative app designs that, for example, use banners like “More than 54 users have repeatedly bought! Why not 2 at once…” or “Hurry up! Over 126 people have this item in their cart” to pressure consumers. Since the EU’s Digital Service Act, which came into effect on February 17, 2024, the use of dark patterns is prohibited.

For many consumers, the joy of online shopping does not exclude a certain awareness of sustainability and climate protection. Temu appeals to this sense of responsibility by advertising a lower carbon footprint if you have goods delivered only to the nearest pickup station instead of to your home. However, since most goods come from China, the last few miles saved are hardly more than a drop in the bucket. Besides this greenwashing strategy, Temu also suggests that consumers alone are responsible for the CO2 emissions.

Another accusation from consumer protection agencies concerns purchased product reviews. Although providers are required to be transparent, consumer protection agencies see critical deficiencies here. The same applies to the often missing or insufficient information about the identity of sellers. The next step for the Federation of German Consumer Organizations could be a lawsuit against Temu. Germany would not be the first country to take action against the Chinese company. France plans an environmental tax on cheap items that do not meet certain sustainability criteria, as well as an advertising ban on fast fashion. German consumers who still want to shop on Temu should follow some basic rules.

Low Price Means Low Quality

With price ranges between 20 euros and a few cents, no one should be surprised not to find branded products on Temu. And if you do, you should be suspicious. Although no-name products are not automatically bad, Temu customers often report defective goods, noticeably poor quality, and inferior packaging that could not adequately protect the products during shipping. Therefore, it is even more important here than usual to carefully check products and customer reviews before purchasing.

Since Temu does not sell directly, the return process can be tedious if a product is damaged. Avoid paying in advance if possible, and only pay once you have received the goods in good condition. If you receive payment requests beforehand, contact the online customer service and explain that you have not yet received the item. This way, you can at least protect yourself financially.

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Beware of Devices Without CE Mark

If shipping and communication with the seller or customer service do not work smoothly, it is undoubtedly annoying. But products that do not meet European safety standards can be truly dangerous. For example, certain products must include a user manual in German. This is often missing from bargain items.

Even more problematic is the CE mark, which many goods lack. CE stands for Conformité Européenne and is mandatory in the EU for toys and electronic devices, among other things. The CE mark is not a quality seal, but with the marking, the manufacturer assures that its products comply with European regulations and takes responsibility for them. Conversely, this can mean that unmarked products do not meet these safety standards, which can have drastic consequences.

At the end of 2021, France temporarily removed the U.S. platform Wish from app stores because 95 percent of the toys offered there did not meet the legal minimum requirements. And initial investigations at Temu also show fundamental deficiencies. “If you look deeper into the product range, you realize that they do not meet the product safety requirements,” emphasizes e-commerce expert Mark Steier to Golem, “You can find products there, like on Wish, whose offering is actually prohibited here in Germany.”

A WDR team even found fake CE marks at Temu, as well as a car door opener that uses a prohibited military frequency, and a smartwatch with a data protection concept as porous as a fishing net. The best way to protect yourself from such things is to carefully check product descriptions and customer reviews and perhaps opt for a branded product from another store.

Liability conditions are also uncomfortably porous. If you order directly from China, it dissolves the manufacturer’s liability. WDR illustrates this with the following example: “If you lend a vacuum cleaner bought on Temu to your neighbors, you can be held liable if the battery catches fire and causes a fire.”

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Surprise Costs at the Border

Even though Temu lures with dirt-cheap prices, you should always inform yourself about the applicable customs and tax regulations when ordering outside the EU. Customs only apply to goods valued at 150 euros, which you can only reach on Temu through a large order. But import sales taxes and consumer taxes can arise from a goods value of 5.26 euros. Since Temu moved its headquarters from Shanghai to Ireland, Temu customers should no longer have a problem with this.

DHL writes: “If the goods were ordered on an online marketplace registered in the EU and the applicable VAT is paid in an EU country, no duties are incurred, as the recipient pays the due duties directly at the time of purchase or online order. This system is called Import One Stop Shop (IOSS). If the shipping vendor registers through it, the tax is already included in the invoice amount at the time of purchase.”

What is good for the individual customer can become a burden for society, as customs, VAT, and similar duties either do not apply or do not end up in Germany. The consequence is the ongoing desolation of city centers, as local shops cannot compete with Temu (or Amazon). Jobs and consumer protection also emerge as losers in this battle for low prices.

More on the topic

EU Commission Takes Stand Against Discount Providers Extra Fee for Packages from Temu and Shein Planned

Consumer Advocates Warn Temu Returns: These Hidden Costs Threaten When Sending Back Items

Temu Operates Unsustainably on All Levels

Those who buy cheap, buy twice. This assessment may prove true for Temu products even faster than for other cheap goods. Because how high-quality can the materials be that were used for a 17-euro pair of jeans? Or for a smartwatch at the same price? You can also be sure that wages and production conditions do not promote social or ecological sustainability. Quite the opposite.

Added to this are the long transport routes from China. The comparison with Amazon’s absurdly short delivery times cannot be a benchmark, as this company also relies on highly questionable working conditions. But local shops and retailers could possibly deliver faster and more sustainably. Toxic chemicals and CO2 are not only generated during the comparatively weakly regulated production in China and the shipping to Germany. But also when the return goes back. That a T-shirt sold for a few euros is shipped halfway around the globe and back again, then does not simply end up in the trash, is at best unlikely.

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Questionable Data Protection

If you install the Temu app, you should also pay attention to some settings. If you agree to the advertising approach, you must expect an excessive number of promotional messages with special offers and playful purchase prompts. When you open the app, you can immediately win a discount with a virtual wheel of fortune. In the worst case, you let yourself be influenced by this and buy more than you actually wanted. In the most harmless case, the many ads are simply annoying.

In the app or smartphone settings, push notifications can be turned off, and you can also unsubscribe from the email newsletter. But you should also protect your personal data, as Temu wants to use it aggressively for commercial purposes. Therefore, make sure in the smartphone settings that location tracking is turned off and you deny the app access to contacts, advertising ID, photos, and microphone. Although Temu is fundamentally a reputable company, you should critically and attentively engage with its offers. And some particularly sensitive products might be better ordered elsewhere.