Cheap store from China

Berlin accuses Temu of manipulative purchasing incentives

Temu lures customers with cheap goods that often do not deliver what is promised in the store.(Bild: AFP)

The German government is insisting on consistent action against the Chinese online marketplace Temu due to allegations of manipulative purchasing incentives. "Games, wheels of fortune, discount countdowns, etc. suggest incredible discounts and bargains," Consumer Protection State Secretary Christiane Rohleder told the German Press Agency in Berlin. "Temu is constantly creating new incentives to buy."

There is a completely new shift from meeting demand to meeting need. The focus on a very young target group is particularly problematic. The EU's Digital Services Act prohibits the manipulative design of online platforms. "It is therefore important that these regulations are now also enforced," said Rohleder.

Comprehensive action against manipulative or addictive practices in digital services is also necessary. The State Secretary for Consumer Protection spoke out in favor of a fundamental principle of "fair by design". "As the Federal Ministry of Consumer Protection, we are committed to this in the review of European consumer protection law."

The German Ministry of Consumer Protection, headed by Steffi Lemke (Greens), had previously voiced harsh criticism of Temu. The background to this was a list of shortcomings compiled by the Federation of German Consumer Organizations (VZBV). The consumer association is currently considering legal action against Temu.

One of the accusations made by the consumer advocates is that the platform unsettles and takes advantage of consumers with seemingly arbitrary discounts, questionable ratings and manipulative designs.

Temu defended itself against the accusations: "Many of our sellers are manufacturers who traditionally supply brick-and-mortar stores," a spokeswoman said. They use their recommended prices, which are based on those in the stores, and highlight the savings on this basis. The stock and purchase updates also reflected the real stock levels.