Retailer Temu's popularity rivals that of Amazon and Shein in the UK, 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 perfectly legal, offered a combination of cash and store credit to new members, but cyber security expertse warned it could lead to people's information being sold to advertisers.
"This app is effectively offering money - not for free - but it's offering money in exchange for personal data and device data," Jake Moore, Global Cyber Security Advisor at ESET, told the Daily Mail. "Data is the new currency and it has been for a little while now. In extreme cases, it can even be used for identity fraud because if that data is compromised, it can be very dangerous for those people that have given their data away."
Chloe Norris suffered burns that her parents believe were caused by nail glue from Temu (Kennedy News & Media)
The 11 year old was left needing skin grafts (Kennedy News & Media)A spokesperson for the company hit back: "We do not and will not sell customer data. Like many other companies, Temu employs various marketing strategies to attract new customers. Our Cash Reward program offered referral incentives – a common customer acquisition method used across industries. Some participants expressed concern about the promotion's Terms & Conditions (T&Cs).
"To reassure our customers, we revised the T&Cs to clearly specify the minimal information used: usernames and profile pictures for referral notifications and winner announcements. The previous terms and conditions had inadvertently included promotional uses that Temu does not engage in."
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This isn't the first time Temu has come under fire for its practices. The retailer's prices are often a third of the likes of Amazon, with 15 million people in the UK alone downloading the app.
Tempting items currently on sale include a kids dinosaur backpack for £1.29 and a pair of women's walking shoes for £7.78. But a Channel 4 Dispatches documentary tonight has uncovered dangerous levels of toxic materials in products including children's clothing.
Last year, the parents of Chloe Norris, 11, claimed she had suffered third-degree burns and needed skin grafts after using glue bought from Temu to do her fake nails. The shopping app launched an investigation and offered the Kent schoolgirl £1,500 in credit as a goodwill gesture.
Dispatches programme makers found items including a child's leather jacket which cost just £11.09 and contained 'absolutely unacceptable high loads' of antimony, a semi-metal linked to breathing problems and lung, heart and stomach issues. Temu in response said: "Our tests did confirm some items exceeded acceptable limits for heavy metals. These items have been permanently removed and we are working with the merchants involved."
In a further statement, a spokesperson added: "Once informed of the unfortunate accident where Chloe suffered burns after coming into contact with a glue product purchased from our platform, we immediately launched an investigation into the matter and removed the product from our site. Our focus was supporting Chloe and her family and we resolved the matter in a manner that was fair and respectful to all parties involved."
"Safety is Temu’s number one priority. We immediately remove any product listings in question pending a review and we have a comprehensive vetting, monitoring, and enforcement process to ensure that products meet platform rules and regulatory requirements.
"We value feedback from the public and the media, and our response to the Channel 4 Dispatches investigation demonstrates our serious and proactive approach to reports of potentially infringing or non-compliant products."
Last year, US lawmakers warned that 'extremely high risk' products sold on the shopping site were made with forced Uyghur labour, referring to the oppressed ethnic group in the Chinese province of Xinjiang. The retailer, which has more than 80,000 suppliers, has since said: "Claims that Temu's competitive pricing is achieved through exploitative labour practices are unfounded.
"We are dedicated to upholding ethical labour practices and our Third-Party Code of Conduct forbids any form of forced, child, or penal labour. Temu requires adherence to all local labour laws, including those related to wages, working hours, voluntary employment, freedom of association, and the right to collective bargaining. We demand strict compliance with all regulatory standards and reserve the right to sever ties with any business that breaches our Code of Conduct or the law."
Dispatches will also reveal the apparent tricks that could lead to addiction to the shopping app, with flash sales, prize wheels and games found to give shopper's highs of pleasure. "I think the Temu system is based on gambling technology," said Conservative politician Iain Duncan Smith, who believes shopping apps should investigated to see if stronger regulation is needed. "So instead of gambling on the outcome of something, they’re actually gambling in the way to get cheaper product."
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In response, Temu said the app's games were inspired by 'activities at funfairs and shopping malls'. “Temu's gamification elements, such as time-limited deals, prize wheels, and interactive games, are inspired by activities at funfairs and shopping malls. These features are designed to be enjoyable and provide value by allowing customers to unlock discounts," the spokesperson said.
"As a newcomer to the UK, we have been adapting our practices and design to suit local preferences and align 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
Do you have a Temu story to share? Contact Vikki.white@reachplc.com.
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