Whaleco Technology Limited (Temu) is an online marketplace and has been operated by Chinese e-commerce giant PDD Holdings. It offers heavily discounted consumer goods which are mostly shipped to clients directly from China. It is a business model that has permitted it to become popular among consumers. But recently, Temu has been facing customer complaints that its business methods violate the latest online content law in Europe, one of the firm’s most immediate-growing markets. In this article, we will cover all the important details about the news. So let’s continue the article.
On Thursday, 16 May 2024, The European Consumer Organization filed a 26-page objection with the European Commission alleging that some of Temu’s business methods violate conditions about product traceability among others. The organization, a Brussels-based assemblage of regional client groups known as a BEUS, stated in the statement that online marketplace Temu fails to supply enough details about the sellers of the product on its platform to decide whether products meet European Union safety requirements. Customer safety is very important for the sellers as it helps them to increase customers. Swipe up the next page for more information about the news.
It also stated the company operates, “manipulative techniques” to get customers to spend over they might originally want to, or to confuse the method of closing down their account.” The European Consumer Organization (BEUC) also said the training contradicts the EU’s Digital Services Act. The legislation, a sweeping latest law aimed at increasing competition from smaller firms in the areas of digital advertising, online search, and app ecosystems, came into full effect earlier this year. Temu, answering a request for comment, stated it has been taking a complaint “very seriously’ and will “study it thoroughly”. It also reported it is committed to full compliance with the laws and regulations of the markers where we work”. Don’t forget to read the full article till the end.
The Temu marketplace first went live in September 2022 in the United States, It quickly made a splash with its inexpensive costs and strong social media presence despite the increasing geopolitical tensions faced by Chinese companies. In less than two years, it became the second most popular shopping app in the United States by monthly users after Amazon.com. Recently, the firm joined European markets for new development. It stated it has around 75 million customers in the EU for six months ended March.
As per the report, the Wall Street Journal declared earlier this week that the deal app has been turning business priorities to Europe and other nations, in part because of mounting political crises encountered by TikTok, the video-sharing platform owned by China’s ByteDance that has been facing the ruling calling for its ban or divestment in the United States. At this time, most people prefer online shopping as it saves time and money and the online marketplace gives several offers. You are on the right page for more information about the news.
As Chinese e-commerce retailer grow more popular globally, they face increasing scrutiny on how they manage content on their platforms. Shein, another Chinese-founded fashion app, that has more than 108 million monthly users in the EU, later this year will face stricter regulations under the Digital Services Act to fight illegal and dangerous content and counterfeit products, the European Commission stated last month. The BEUC, an umbrella organization for client groups in 31 nations stated that seventeen of its members had also filed the complaint with their respective national rules in France, Spain, Italy, and more than nations. If we get any information then we will update you as soon as possible. Stay tuned to us for more updates.
