It’s the shopping website known for selling incredibly cheap goods, but from allegations of forced labor to claims of third-degree burns, could Temu be too good to be true?
Retailer Temu’s popularity rivals that of Amazon and Shein in Britain, but the Chinese shopping app is also shrouded in controversy.
Temu recently caused a stir by offering ‘free money’ for new sign-ups, with hundreds of people flooding the internet with screenshots of £50 deposited into their PayPal accounts. The promotion, which was completely legal, offered new members a combination of cash and store credit, but cybersecurity experts warned it could lead to people’s information being sold to advertisers.
“This app is actually offering money – not for free – but offering money in exchange for personal data and device data,” Jake Moore, Global Cyber Security Advisor at ESET, told the Daily Mail. ‘Data is the new means of payment, and has been so for some time. In extreme cases, it can even be used for identity fraud, because if that data is compromised, it can be very dangerous for the people who gave their data away. “
A company spokesperson responded: “We do not and will not sell customer data. Like many other companies, Temu uses different marketing strategies to attract new customers. Our Cash Reward program offered referral incentives – a common customer acquisition method used across all industries. Some participants expressed concerns about the terms and conditions of the promotion.
“To reassure our customers, we have revised the terms and conditions to clearly specify the minimum information used: usernames and profile photos for referral notifications and winner announcements. The previous terms and conditions had included unintended promotional uses that Temu does not engage in.”
This is not the first time Temu has come under fire for his practices. The retailer’s prices are often a third of Amazon’s, with the app downloaded by 15 million people in Britain alone.
Tempting items currently on sale include a kids’ dinosaur backpack for £1.29 and a pair of women’s walking boots for £7.78. But a Channel 4 Dispatches documentary tonight exposed dangerous levels of toxic materials in products including children’s clothing.
Last year, the parents of Chloe Norris, 11, claimed she suffered third-degree burns and needed skin grafts after using glue bought from Temu to do her false nails. The shopping app launched an investigation and offered the Kent schoolgirl £1,500 in credit as a gesture of goodwill.
Post program makers found items including a children’s leather jacket that cost just £11.09 and contained ‘absolutely unacceptably high levels’ of antimony, a semi-metal linked to respiratory problems and lung, heart and stomach problems. Temu responded: “Our testing has confirmed that some items exceeded acceptable limits for heavy metals. These items have been permanently removed and we are working with the traders involved.”
In a further statement, a spokesperson added: “Once we became aware of the unfortunate accident in which Chloe suffered burns after coming into contact with an adhesive product purchased on our platform, we immediately launched an investigation into the matter and the product is removed from our site. Our focus was on supporting Chloe and her family and we resolved the matter in a way that was fair and respectful to all parties involved.”
“Safety is Temu’s top priority. We immediately remove any product listings in question pending a review and we have a comprehensive review, monitoring and enforcement process to ensure products comply with platform rules and regulatory requirements.
“We value feedback from the public and the media, and our response to Channel 4 Dispatches’ investigation demonstrates our serious and proactive approach to reports of potentially infringing or non-compliant products.”
Last year, US lawmakers warned that “extremely high risk” products sold on the retail site were made with forced Uyghur labor, referring to the oppressed ethnic group in China’s Xinjiang province. The retailer, which has more than 80,000 suppliers, has since said: “Claims that Temu’s competitive prices are achieved through exploitative labor practices are unfounded.
“We are committed to maintaining ethical labor practices and our Third Party Code of Conduct prohibits any form of forced, child or penal labor. Temu requires compliance with all local labor laws, including those relating to wages, hours, volunteerism, freedom of association and the right to collective bargaining. We demand strict compliance with all legal standards and reserve the right to sever ties with any company that violates our Code of Conduct or the law.”
Posts will also reveal the apparent tricks that can lead to addiction to the shopping app, with flash sales, prize wheels and games that give the shopper a high sense of fun. “I think the Temu system is based on gambling technology,” says Conservative politician Iain Duncan Smith, who believes shopping apps should be investigated to see if stronger regulation is needed. “So instead of betting on the outcome of something, they’re actually betting on the way to get a cheaper product.”
In response, Temu said the app’s games were inspired by “activities at fairs and shopping malls.” “Temu’s gamification elements, such as limited-time offers, prize wheels and interactive games, are inspired by activities at fairs and shopping centers. These features are designed to be enjoyable and provide value by allowing customers to unlock discounts,” the spokesperson said.
“As a newcomer to the UK, we have adapted our practices and design to suit local preferences and in line with relevant regulations. We are keen to work with stakeholders to address and improve aspects of our app.”
Watch The Truth About Temu: Dispatches on Channel 4 tonight at 8pm
Do you have a Temu story to share? Contact Vikki.white@reachplc.com.