Different European countries investigate Temu for alleged unfair commercial practices

E-commerce platform Temu is the subject of recent investigations in Europe focused on alleged illegal practices. The Hungarian Competition Authority (GVH) has opened an investigation against Whaleco Technology Limited, the European operator of the Temu online marketplace, for alleged unfair commercial practices and misleading consumers.

In a statement published this week, said public body indicates that Whaleco Technology Limited may be carrying out sales pricing and promotion practices on its website and through the Temu mobile application.understanding that it could mislead consumers and that promotional offers for products available on the website and in the platform application can have the general effect of urging and psychologically pressuring consumers to make a purchasing decision.

The GVH has observed that the website could have engaged in alleged deceptive commercial practices in relation to the essential characteristics of the products, especially their environmental impact. Furthermore, the GVH also considers that Temu is allegedly susceptible to giving the false impression that the products it promotes and markets are lawfully marketable, despite the fact that they do not bear the “CE” conformity mark.

The GVH has observed that the website could have engaged in alleged deceptive commercial practices in relation to the essential characteristics of the products, especially their environmental impact.

This investigation by the Hungarian authority joins other open fronts on Temu's activities related to the Digital Services Law. Also this week, a spokesperson for Coimisiún na Meán, the new Irish commission to regulate broadcasting and online media and responsible for overseeing the Digital Services Act in the country, told Euronews that Temu is part of the broad review of the agency in the scope of application of EU rules on platforms. This law establishes that Companies with more than 45 million users are considered very large online platforms (VLOPs), which means they face stricter rules to combat illegal and harmful content and counterfeit products on their platforms..

This March 'Financial Times' published an article about supposedly unethical practices of the Chinese company with former employees who report that Pinduoduo, Temu's parent company, allegedly resorted to detectives to prevent an employee who joined in 2022 after finishing university and He left a year after failing to comply with his anti-competition agreements.

The 'Financial Times' investigation indicates that the Chinese company has allegedly repeatedly monitored former employees who left for competitors and has sued them to enforce non-compete agreements.