Production has a cost. The question is, who pays for it?
We have all seen the ads. The bright orange logo invites us to “shop like a millionaire” while enticing us with prices that are simply too good to be true. Yet, despite a plethora of articles on questionable labour practices that may be linked to the products, studies revealing dangerous chemicals and subpar wiring in products, lawsuits, and allegations of spyware and unlawful data collection, Temu continues to expand their reach.
Temu is an online marketplace where third-party sellers sell their products, founded in 2022. It is a Chinese based company owned by PDD (Pinduoduo) Holdings, and has followed the growth strategy of ultra-fast fashion company Shein by marketing its products overseas through aggressive social media. In 2022, Temu even sponsored to advertisements during the Super Bowl, leading to a 45% increase in downloads in the app stores. In March 2023, Temu entered the top five free apps in the US Apple Store, climbing above Amazon and Walmart.
To set the stage for this discussion, we will start with a look at the sheer size of Temu. In 2024, the online retail platform reached almost $71 billion. Compare this to some other companies – IKEA’s global revenue reached $45 billion, Inditex (Zara, Bershka, Stradivarius) reached €39 billion in sales last year. Even Shein brought in less revenue at $50 billion last year.
While I’m generally not a fan of corporations putting all the responsibilities of ethical consumption on the consumers, such as the carbon footprint model was designed to do, we also can’t deny the impact individuals can have. Of course, the main target audience for this statement would be those partaking in excessive consumption enabled by low prices, not low-income families who cannot afford other brands.
“How bad can it be?”
It’s easy to feel that it surely can’t be that bad, since Temu has so many users. And, living in the EU or U.S., we might feel that laws and regulations might protect us and others from harm. But that is unfortunately not necessarily the case.
Forced labour in supply chains
There is virtually no way to ensure that forced labour is not used to produce the products on discounts sites such as Temu. U.S. lawmakers have warned of an “extremely high risk” that the merchandise sold on the marketplace have been produced with forced labour. However, Temu distances itself from any responsibility to comply with the 2021 Uyghur Forced Labour Prevention Act. This law states that imported goods with a production point in Xinjiang must certify that no forced labour was involved in the production to avoid penalties. Considering that Shein has also been found to not declaring cotton from the Xinjiang region, and reports tell of illegal labour conditions, it’s not unreasonable to expect other discount retailers to exploit cheap labour to gain a market advantage. PPD Holdings, Temu’s parent company, had been accused of forcing their employees to work “extreme overtime”, up to 380 hours a month. There have also been protests following workers’ deaths in 2021.
Supporting businesses like Temu instead of local ones who try to avoid forced labour undermines business making efforts to protect workers and having a transparent supply chain.
Dangerous chemicals – even in children’s toys
The European Consumer Organisation BEUC has tested toys that contained illegal amounts of borates and phthalates. These chemicals can harm children’s reproductive systems and increases the risk of cancer, asthma and allergies. Toys were also found to contain unsafe parts that can detach and pose choking hazards for children.
South Korean authorities have conducted quite extensive tests of clothing off both AliExpress, Shein and Temu. The tests revealed up to 622 times the legal limit for toxic substances, including phthahlate plasticisers, lead, and cadmium. Phthalate-based plasticisers can affect reproductive functions and even cause infertility and premature births, and lead and cadmium have been classified as hazardous carcinogenic materials by the US Department of Health and Human services. Sandals from Temu were also found to contain up to eleven times more than the permissible limit of lead.
Cosmetics ordered off of Temu displayed inconsistencies in labelling and missing expiration dates. Instructions on packaging disposal did not follow European laws, with some only having instructions in Chinese. Incomplete ingredient lists were also documented, which poses risks for people with allergies, and could indicate a higher risk of illegal substances used in production. Cosmetics have also been found to contain lead.
While Temu has removed these specific products off their marketplace in certain instances following these tests, it is unclear whether the platform has put in place effective measures to prevent this from happening in the future.
Fire and electrocution hazards
Electric components sold on Temu have been found to either have insufficient CE certifications or none at all, with products being prone to catching fire. Incorrectly labelled electrical products which include water-filled lamps could cause electrocution. Electric heaters could not be sold legally in the UK with improper assembly and exposed live parts, posing fire and explosion hazard. Illegal or counterfeit CE markings have also been identified.
IP violations
You know it’s bad when Shein of all companies accuses you of IP (Intellectual Property) violations.
But while the feud between Temu and Shein can be attributed to fierce competition, I want to focus on the fact that small businesses have their art stolen and used by sellers on Temu.
Stealing product photos or art and using them as prints of clothing or canvases, sellers on Temu can provide these products at a much lower price than the original – naturally without the original creators not receiving any kickback. While Temu has an intellectual property protection team that can process complaints and take down infringements, products often come back, and the process starts anew.
Since Temu is a Chinese company, Chinese copyright laws apply on the platform. But these are famously weak, and even larger foreign companies struggle with copyright infringement in China. Even with Chinese authorities working to strengthen IP protection to incentivise foreign investments in recent years, IP regulations remain territorially valid and difficult for foreign companies to navigate.
But how does that affect… me?
If the forced labour allegations and dangerous products combined with IP theft didn’t stop you from ordering your treats off Temu, maybe their questionable business practices, data theft and potential spyware will deter you.
The European Union has urged Temu to follow EU laws on consumer protection, citing a list of problematic aspects of the Temu platform:
- Fake discounts: Creating the illusion of discounts where none actually exist.
- Pressure selling: Using high-pressure tactics such as false claims of limited stock or fake purchase deadlines to rush consumers into making quick decisions.
- Forced gamification: Requiring users to engage in games like “spin the wheel” to access the platform, without clearly disclosing important terms and conditions related to the rewards.
- Missing or misleading information: Providing incomplete or inaccurate details about consumers’ legal rights to returns and refunds, and failing to inform users upfront about minimum order value requirements.
- Fake reviews: Insufficient transparency about how the platform ensures the authenticity of reviews published. National authorities have identified potentially fake reviews.
- Hidden contact details: Deliberately making it difficult for users to contact Temu for questions or complaints.
Unlawful data collection and processing
There seem to be almost an unending stream of lawsuits against Temu floating around. In June 2024, the Attorney General of Arkansas filed a lawsuit against Temu for violations of the Arkansas Deceptive Trade Practices Act (ADTPA) and the Arkansas Personal Information Protection Act (PIPA). The Canadian Consumer Law Group has filed a class action lawsuit against Temu for excessive data collection, and another class action lawsuit was filed in Massachusetts in 2024 for violating consent given in marketing context.
In October 2024, the European Commission opened formal proceedings to investigate Temu’s potential violation of the Digital Service Act (DSA) including selling illegal products, the aforementioned addictive design of the platform, and how the system recommends purchases to users. In January 2025, non-profit privacy advocacy group “None of Your Business” filed six complaints against Chinese companies, including Temu, for transferring European’s user data to China and infringing on the EU’s GDPR (General Data Protection Regulation).
Are these valid concerns? Considering the sheer size and influence of Temu, it’s valid to assume it is under strict control of the Chinese government, as other Chinese e-commerces are. Under China’s National Intelligence Law, companies are required to share data with the government upon request. Together with alleged excessive data collection – you do the math. CSIS also claims that through its parent company, Pinduoduo, Temu is connected to the company People’s Data, which is directly involved in the Chinese Communist Party’s strategy to control media and data.
Concerns regarding malware and spyware in the Temu app
In April 2023, CNN uncovered extensive spyware on Temu’s Chinese sister app, Pinduoduo. With a monthly userbase of over 750 million a month, the news that it can bypass users’ phone security to monitor activities on other apps, read private messages, check notifications, and change setting made waves. The app apparently exploited vulnerabilities on Android phones to spy on users and competitors to boost their sales. Just a month before, the Pinpinduo app had been removed from the Google store due to malware findings in off-Play versions. Researchers had found that code had been written to exploit operating systems to gain higher levels of access than given by users. The app was even able to prevent itself from being uninstalled, which would boost its monthly active users as the app runs in the background. However, Google Play is not available in China and the app is still available for download nationally.
Now, Temu is facing lawsuits alleging that the app also contains malware and spyware. It remains yet to be seen whether these accusations are true.
So… what now?
As mentioned above, I’m not a fan of blaming consumers for the impact that major companies have. After all, what is one lone consumer in the grand scheme of things?
At the same time, choosing to not support companies that sell potentially dangerous products where forced labour may have been involved feels like a good place to start. I’m not claiming that products sold in the EU and U.S. are free from ethical concerns, especially in industries such as fast fashion, but these retailers are subject to regulations and controls that are meant to protect consumers and workers, whereas retailers based outside of these regions have the means to circumvent regulations and controls. In the end, all we can do is conduct our own research and act as best as we can based on the information we have.
But – if it’s too good to be true, it probably is. That will never change. With all this being said, there are Chinese brands and manufacturers who focus on ethics and sustainability. But it’s probably not the brands who offer t-shirts for not even a dollar.
Want to read more on this topic? Here are some suggestions:
Workers’ conditions in the textile and clothing sector: just an Asian affair?
The True Cost Of Shein Is One We’re Not Willing To Pay