The Cooperation Network for Consumer Protection (CPC Network) of the European Union has requested information from the Chinese online commerce giant Temu after detecting practices that violate European consumer protection legislation. Among them, false discounts, misleading information or inducing sales under pressure, such as when it claims that there are a limited number of products for sale to motivate the purchase. It should be remembered that Brussels is already investigating Temu for suspicions of online sales of illegal products.
Red CPC is formed, among others, by national consumer authorities, including the General Directorate of Consumer Affairs of the Government of Spain, and its investigations are coordinated by the European Commission.
Red CPC has sent a notification to the online sales platform, as explained by the Ministry of Social Rights, Consumption and Agenda 2030, in which it warns Temu that it has detected commercial practices “that could infringe European legislation for the protection of people. consumers.”
The objective of communication and this process is to “ensure a safe and reliable online environment in which the rights of European consumers are respected.” The CPC Network details that it has “detected a wide range of practices that consumers face when shopping at Temu.” Among them, “techniques that may mislead consumers or that may unduly influence their purchasing decisions” and, in addition, investigates whether “Temu complies with the specific information obligations of online markets according to legislation on consumption”.
Among the practices that it has identified, “false discounts” stand out, through which the false impression is given that products are offered with a discount when there really is none. Also, “sales under pressure”, in which “tactics such as false statements about limited product stocks or false purchase deadlines are used to pressure consumers to make their purchase.”
Other practices are based on the ‘gamification’ of shopping, “through which consumers are forced to play the “roulette of fortune” to access the online market, while hiding essential information about the conditions of use. linked to the game. And, in the “lack of information or misleading information about consumers’ legal rights to return products and receive refunds in addition to not informing consumers in advance that their order must reach a certain minimum value before they can complete their order. buys”.
If you do not cooperate there may be sanctions
In addition, Red CPC also points out the identification of “fake reviews”, “when the company does not provide adequate information on how it guarantees the authenticity of the opinions published on its website, and it may be suspected that there are reviews that are not authentic” and “contact information”. hidden, making it difficult for consumers to easily contact Temu in case of questions or complaints.”
After detecting these actions, “Red CPC has requested information from Temu to evaluate the company’s compliance with other obligations derived from EU legislation on consumer protection, among which is the obligation to clearly inform consumers whether the seller of a product is a merchant or not.” In addition, it requires you to ensure that “product ratings, reviews and ratings are not presented to consumers in a misleading manner, that price reductions are correctly announced and calculated; and ensure that any environmental claims are accurate and substantiated.”
From now on, “Temu now has one month to respond to the conclusions of the CPC Network and propose commitments on how it will address the problems identified in terms of consumer law,” explains the Ministry. And the door opens to sanctions. “Depending on Temu’s response, the CPC Network may engage in dialogue with the company. If Temu does not respond to the concerns raised by the CPC Network, national authorities may take enforcement action to ensure compliance.”
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