Who are the owners of Temu and why is this company being investigated?

Who are the owners of Temu and why is this company being investigated?
Who are the owners of Temu and why is this company being investigated?

Trade

By:

Briefcase








May 22, 2024 11:57 a.m. m.

It is very likely that social network and internet users will frequently encounter, while browsing, advertising for Temu, an online sales platform that has gained great prominence among players in the e-commerce industry.

(Read: ‘Amazon on steroids’: this is Temu, the Chinese giant that is shaking up online shopping).

It is a company of Chinese origin, belonging to the PDD Holdings group, which competes with Alibaba in search of a larger slice of the pie in this application sales segment.

One of the main characteristics of Temu’s model is the sale of low-priced products that it offers to its customers, most of them made in Chinese factories.without specific brands.

However, its rise has been tainted by serious recent complaints for alleged violations of consumer protection regulations in Europe, where Temu is under scrutiny.

(See: Chinese platform Temu shakes up online sales: why is this).

Given the accusations, The company issued a statement in which it stated that it does not sell user data as indicated.


Temu

Temu website

“Temu does not sell its customers’ data. We fully comply with local laws and regulations for data storage. We rely on Microsoft cloud services in multiple locations to ensure data security”the company said.

For European authorities, the e-commerce platform would have flaws in the traceability of data collected from users and difficulties in deleting accounts already created.

(Also: Why they decided to extend the extension of electronic commerce tariffs for two years).

Additionally, price increases would have been detected when a user clicks on the same product several times, among other techniques to manipulate users and encourage excessive consumption against consumer standards in Europe.

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