We have written about a few investigations by the CMA relating to online choice architecture or dark patterns. There is also action at EU level, with the Consumer Protection Cooperation (CPC) Network of national consumer authorities and the European Commission telling the online marketplace Temu that some of its practices infringe EU consumer law. 

The CPC Network says that consumers encounter several practices on the Temu platform which could mislead them or unduly influence their purchasing decisions. The CPC Network is also investigating whether Temu complies with specific information obligations for online marketplaces under consumer law.

What has the CPC identified?

The CPC Network identified the following practices which it says breach EU consumer protection laws, such as:

  • Fake discounts: Giving the false impression that products are offered with a discount where there isn't one.
  • Pressure selling: Putting consumers under pressure to complete purchases using tactics like false claims about limited supplies or false purchase deadlines.
  • Forced gamification: Forcing consumers to play a ‘spin the fortune wheel' game to access the online marketplace, while hiding essential information about the conditions of use linked to the rewards of the game.
  • Missing and misleading information: Displaying incomplete and incorrect information about consumers' legal rights to return goods and receive refunds. Temu also fails to inform consumers in advance that their order needs to reach a certain minimum value before they can complete their purchase.
  • Fake reviews: Giving inadequate information about how Temu ensures the authenticity of reviews published on its website. National authorities found reviews which they suspect to be unauthentic.
  • Hidden contact details: Consumers cannot easily contact Temu to ask questions or make complaints.

In addition, the CPC Network requested information from Temu so that it can assess its compliance with further obligations under EU consumer law, such as the obligation to inform consumers clearly whether the seller of a product is a trader or not; to ensure that product rankings, reviews, and ratings are not presented to consumers in a misleading manner; to ensure that price reductions are announced and calculated correctly; and to ensure that any environmental claims are accurate and substantiated.

This is separate to the formal proceedings the Commission has launched against Temu under the Digital Services Act covering addictive design, recommender systems, selling non-compliant products in the EU and and access to data by researchers.  In addition, the Commission has pointed out that, from 13 December 2024, the General Product Safety Regulation will require that there is an economic operator established in the EU who is responsible for ensuring compliance with product safety requirements, including specific obligations on online marketplaces that target consumers. 

Next steps

Temu now has one month to reply to the CPC Network's findings and say how they will address the consumer law issues identified. 

The case shows the intersection of the laws on consumer protection, product safety and the Digital Services Act.  It is of interest for companies selling products to consumers in the EEA.