Chinese online marketplace Temu is facing a new legal challenge after 17 companies in the European Union accused it of breaking new laws with “manipulative practices”.
The legal complaint filed by the companies also accused Temu of a lack of transparency.
According to consumer group BEUC, Temu is also accused of “failing to protect consumers” and “using manipulative practices which are illegal under recent EU legislation”.
This includes allegations that Temu is breaking new EU laws that mean products have to comply with European law if they sell to European customers, regardless of where the company is based.
The legal complaint alleges that Temu makes it harder to delete an account than set one up and misleads customers on pricing.
It also accuses Temu of allowing some traders to be untraceable by consumers and says it is not clear enough about why certain products are recommended to users – both of which are against EU laws.
In a statement to Sky News, Temu said: “Our commitment to compliance and our willingness to engage stakeholders globally can be seen in our proactive actions.
“Regarding the BEUC complaint, we take it very seriously and will study it thoroughly. We hope to continue our dialogue with the relevant stakeholders to improve Temu’s service for consumers.”
The statement adds that Temu has entered a cease-and-desist declaration with the Federation of German Consumer Organisations to commit to addressing concerns, as well as signing a product safety pledge with South Korea’s Fair Trade Commission.
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