It’s a 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 rivals Amazon and Shein in the UK in popularity, but the Chinese shopping app is also shrouded in controversy.
Temu recently caused a stir by offering ‘free cash’ for new sign-ups, with hundreds of people flooding the internet with screenshots of £50 being paid into their PayPal accounts. The promotion, which was completely legal, offered new members a combination of cash and store credit, but cyber security experts warned it could lead to people’s information being sold to advertisers.
“This app is effectively offering money – not free – but offering money in exchange for personal and device data,” Jake Moore, ESET’s global cyber security advisor, told the Daily Mail. “Data is the new currency, and it has been 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 provided their data.”
A company spokesperson responded: “We do not and will not sell customer data. Like many other companies, Temu uses various marketing strategies to attract new customers. Our Cash Reward program offered incentives for referrals – a common customer acquisition method used in various industries. Some participants expressed concern regarding the terms and conditions (T&C) of the event.
“To reassure our customers, we’ve revised the terms to clearly specify the minimum information used: usernames and profile pictures for referral alerts and winner notifications. The previous terms inadvertently included 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 15 million people downloading the app in the UK alone.
Tempting items currently on sale include a children’s dinosaur backpack for £1.29 and a pair of ladies’ walking boots for £7.78. But a Channel 4 Dispatches documentary tonight revealed 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 fix her fake nails. The shopping app launched an investigation and offered the Kent schoolgirl £1,500 as a goodwill gesture.
Organizers of the expedition found items including a child’s leather jacket, which cost just £11.09 and contained “absolutely unacceptable high doses” of antimony, a semi-metal linked to respiratory problems and lung, heart and stomach problems. In response to Temu, he said: “Our tests confirmed that some items exceeded acceptable limits for heavy metals. These items have been permanently removed and we are working with the retailers involved.”
In another statement, the spokesperson added: “As soon as we were informed of the unfortunate accident in which Chloe suffered burns after coming into contact with an adhesive purchased from our platform, we immediately launched an investigation into the matter and removed the product from our site. Our focus has been on support of Chloe and her family and we resolved the matter in a way that was fair and respectful to all parties involved.”
“Security is Temu’s number one priority. We immediately remove any affected products pending review and have a comprehensive screening, monitoring and enforcement process to ensure that 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.”
US lawmakers warned last year that “extremely risky” products sold at the point of sale were made by forced Uighur labor, referring to the oppressed ethnic group in China’s Xinjiang province. The retailer, which has more than 80,000 suppliers, has since said: “Allegations that Temu’s competitive prices are achieved through exploitative labor practices are unfounded.
“We are committed to ethical labor practices and our Third Party Code of Conduct prohibits any form of forced, child or criminal labour. This requires compliance with all local labor laws, including those relating to wages, working hours, voluntary employment, freedom of association and the right to collective bargaining We require strict compliance with all regulatory standards and reserve the right to terminate ties with any business that violates our Code of Conduct or the law.”
The dispatch also exposes obvious gimmicks that could lead to addiction to the shopping app, with flash sales, prize wheels and games that bring joy to the shopper. “I think the Temu system is based on gambling technology,” said Conservative politician Iain Duncan Smith, who believes shopping apps should be scrutinized to see if stronger regulation is needed. “So instead of betting on the outcome of something, they’re actually gambling on a way to get a cheaper product.”
In response, Temu said that 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 amusement parks and shopping malls. These features are designed to be enjoyable and provide value by enabling customers to unlock discounts,” the spokesperson said.
“As a newcomer to the UK, we have been adapting our processes and design to suit local preferences and comply with relevant regulations. We are committed to working with stakeholders to address and improve aspects of our app.”
Watch The Truth About Temu: Dispatches tonight on Channel 4 at 8pm
Want to share a Temu story? Contact Vikki.white@reachplc.com.