Arbitrary discounts, dark patterns: Temu issues cease-and-desist declaration

The Federation of German Consumer Organizations is not taking Temu to court. The online marketplace vows to do better.

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Screenshot der Temu-Internetseite mit Sommer-Angeboten auf Temu für besseres Schlafen, Gemüsegrillen, solares Beleuchten und fürs Doppelkleben.​

Summer offers on Temu for better sleeping, vegetable grilling, solar lighting and double gluing.

(Image: Temu, Screenshot)

2 min. read
This article was originally published in German and has been automatically translated.

In future, no more manipulative designs or strike-off prices are to appear on Temu without further explanation. According to the Federation of German Consumer Organizations (vzbv), the operators of the online marketplace have promised this with a declaration of discontinuance. The vzbv will therefore refrain from taking legal action, it announced.

The consumer advocates had issued a warning to Temu, or rather the company behind it, Whaleco Technology, in March because its business practices were in breach of EU regulations. For example, visitors to the site were shown messages such as "Hurry up! Over 126 people have this item in their shopping cart". It was unclear how high discounts were achieved.

The vzbv's proceedings have been concluded out of court with the declaration of discontinuance. Should Temu violate this declaration, the vzbv can demand a contractual penalty. It promises to keep an eye on Temu. Apart from this, vzbv boss Ramona Pop is calling on the EU Commission to clarify in its planned guidelines how manipulative and addictive designs on online platforms can be specifically prevented.

Temu had initially defended itself against the vzbv's accusations. In a statement to heise online, a company spokesperson explained that many of the sellers on Temu normally supply stationary retailers. The prices shown there are the reference for the products that Temu offers directly from the factory without any detours. The displays showing how many people had placed an item in their shopping cart reflected the actual stocks and purchasing activity.

According to dpa, a Temu spokesperson said: "We attach great importance to compliance and the experience of consumers in Germany. As a relative newcomer to the German market, we seek cooperation with all market participants and value their feedback." The signing of the cease-and-desist declaration demonstrates Temu's commitment to the German market.

(anw)