Is Temu legit? Prospects are scared of on-line scams

Temu, a preferred e-commerce web site that boasts free supply all over the place and the tag line “Store like a billionaire,” has come below scrutiny in current months and is now being accused by sellers on Amazon of copying complete storefronts. 

The net retailer is some of the standard apps – presently No. 3 on Apple and No. 2 on Google units – however has been given a C-minus grade by the Higher Enterprise Bureau amid complaints from prospects. 

“This firm has scammed me” — buyer critiques polarized

Like Amazon, Temu is a one-stop store for a plethora of merchandise, however most of the gadgets on Temu are listed at extremely low costs. Some prospects say it is too good to be true. 

The retailer sometimes ships merchandise from producers in China – if, that’s, it ships merchandise in any respect, as some prospects have complained.

“This firm has scammed me and ripped me off,” one reviewer wrote on the Higher Enterprise Bureau web site. “I had positioned two orders with Temu on 05/25/2023 however the supposed order was shipped in a single badly broken and torn field. Upon receiving this order their have been quite a few gadgets lacking from the order.”

The grievance goes on to say Temu allegedly denied the consumer a refund and customer support was unresponsive. “I’m so bored with coping with this firm,” the client wrote. “This firm is nothing however skilled liars and rip-off artists!!!!”

“I imagine they’re scammers,” one other particular person wrote, claiming they by no means obtained the $50 price of merchandise they ordered from Temu. “I imagine that they’re preying on harmless folks for income they have to be a category motion civil go well with in opposition to them for false promoting and stealing cash on-line. if anybody is please let me know thanks.”

One other particular person claimed Temu marketed gross sales on-line, however as soon as the app was downloaded, that pair of footwear promised to be $2.49 grew to become $22.49. And as soon as added to the cart, she stated the value was elevated to $29. Some consumers stated the unsuitable dimension clothes was delivered. Many stated gadgets they ordered have been by no means delivered and complained concerning the lack of refunds after returns and unresponsive customer support.

Temu claims on its web site it gives a “Temu Buy Safety Program,” which gives “refunds for gadgets that don’t arrive, arrive broken, or aren’t as described.” The refund quantity, nonetheless, could not match the complete value of the gadgets since gross sales taxes, transport, used coupons and credit score are taken into consideration.” The location doesn’t enable exchanges, however says prospects can return orders.

There are a number of movies about Temu on TikTok, they usually seem to fall below two genres: movies the place customers share their unfavorable experiences with the corporate, and haul movies, the place customers merely exhibit what they purchased and the way a lot it price. A number of the optimistic critiques are from TikTok customers who’ve low cost codes or affiliate hyperlinks for Temu – which means they’re both being paid or getting a reduction to advertise the corporate – that are normally disclosed within the caption of the movies. 

Some folks appeared genuinely proud of the merchandise they purchased. “First ever Temu order and truthfully 10/10,” one consumer wrote within the caption of a video the place she opens a bundle with a scarf, a small fan, highlighters and different merchandise. 

One other consumer cautioned that the merchandise from Temu do not maintain up after a couple of month. She stated the pajamas she purchased from Temu have been low high quality, a small fan barely labored and the colour of her gold jewellery had worn off. “I am not being choosy. I paid like 87 cents for a pack of bracelets, okay? However I am simply saying, when you order, be ready,” she stated. Within the caption of the sincere product haul she wrote: “Do not get me unsuitable I really like Temu & my cart is full as we communicate however simply fyi.”

Some reviewers declare Temu bought them pretend Air Jordan sneakers, after the corporate got here below fireplace earlier this yr for promoting the obvious knockoff sneakers for $50. On-line retailer Shein, which was additionally accused of promoting pretend Jordans, eliminated them from its web site, however a number of variations of the seemingly counterfeit Nike footwear are nonetheless accessible on Temu. 

In a press release to Enterprise Insider concerning the knockoffs, Shein stated it “takes all claims of infringement significantly” and eliminated the product in query, including that third-party sellers are required certify inheritor merchandise don’t infringe IP and to adjust to the corporate’s insurance policies.

CBS Information has reached out to Temu for remark and is awaiting response. 

Is Temu dependable?

The Higher Enterprise Bureau, which analyzes firms primarily based on critiques and complaints and likewise gives a spot for folks to share suggestions on companies, says it gave Temu a C-minus score partially as a result of 581 complaints have been submitted in opposition to enterprise because it opened final July. 

Whereas many purchasers have known as the corporate a rip-off of their complaints, the BBB has not designated it as a rip-off or an unsafe firm. 

Temu isn’t accredited by the BBB, which says its accreditation requires a enterprise to construct belief, promote truthfully, be responsive, embody integrity and meet different requirements. The shortage of accreditation might merely imply Temu has not sought BBB accreditation, which prices a payment.

The U.S.-China Financial Safety Assessment Fee lately opened an investigation into the information dangers, sourcing violations, and commerce loopholes of “quick style” websites like Temu and Shein. 

The fee didn’t outright say they discovered Temu’s app or web site to be unsafe, however stated the corporate’s “lack of affiliation with established manufacturers has introduced considerations of product high quality in addition to accusations of copyright infringement,” the fee stated in its subject temporary, launched in April.  

The investigation discovered Temu is effectively positioned to use social media platforms and “has invested closely in social media advertising and marketing, buying 8,900 advertisements throughout Meta platforms in January 2023 alone.” 

In accordance with the fee’s findings, the corporate continuously hires social media customers as “influencers,” who’re sometimes folks with giant followings that may assist promote firms. Temu, nonetheless, solely requires their “influencers” have 300 followers. These influencers are inspired to publish “haul” movies and suggest merchandise to their followers.

The fee says Temu’s fast success raises flags about its enterprise practices and that its mum or dad firm, PDD Holdings was accused of “excessive time beyond regulation,” by the China Labor Watch. The corporate, which additionally runs on-line retailer Pinduoduo in China, has required workers to work 380 hours per thirty days – greater than double the common within the U.S., which is about 160 hours a month or 40 hours every week – in response to the fee. 

On prime of that, earlier this yr, the fee reported a CNN investigation discovered malware on Pinduoduo’s Google Android app, permitting it to entry “personal messages, change settings, view knowledge from different apps, and stop uninstallation.” CNN spoke with half a dozen cybersecurity researchers from Asia, Europe and the U.S. and “a number of specialists recognized the presence of malware” on the app. Google suspended the app following an investigation.

The fee didn’t disclose any findings, if any, about Temu’s app. 

Alleged Amazon storefront “cloning”

Like Amazon, Temu gives merchandise from third-party sellers – people or firms that promote their merchandise by way of these e-commerce websites. Third-party sellers which have what Amazon calls “storefronts” – pages for his or her model the place their merchandise are bought – have accused Temu of “cloning” these storefronts. 

In some instances, the sellers have sued after they are saying their Amazon storefront and merchandise had been duplicated on Temu with out their consent. 

An organization that trademarked Hicober – a model of hair towels bought on Amazon – sued Temu and one other on-line retailer, claiming they have been promoting hair towels branded as Hicober with out permission and with out approved use of the trademark. In its movement to dismiss the grievance, Temu stated it had eliminated all of the allegedly infringing merchandise and that “[a]ny infringement was dedicated by the third-party sellers who manufactured the towels [and] created the product listings,” not Temu.

Shein, one other e-commerce web site that has third-party sellers and likewise has an Amazon storefront along with its personal web site and app, filed a lawsuit in opposition to Temu earlier this yr. The go well with claims Temu copied merchandise listings from Shein, which violates copyrights, since Shein owns the rights to a number of pictures on their web site. 

The go well with additionally alleges Temu employed influencers to advertise its app on-line – whereas making unfavorable feedback about Shein. The go well with alleges Temu instructed influencers to say issues like: “Shein isn’t the one low cost possibility for clothes! Verify Temu.com out, cheaper and manner higher high quality”; and “On the lookout for garments higher than Shein however cheaper than Revolve? Verify Temu.com out.” 

Temu has filed a movement to dismiss a number of of the claims, together with by arguing that the quoted statements “have been merely given as ‘references’ for the influencers as they thought of learn how to caption their very own posts.”

CBS Information has reached out to Shein for remark and is awaiting response. 

An Amazon vendor named David stated in an interview with Wired this week that he was searching Temu and noticed two listings that appeared practically equivalent to his Amazon web page – however the craft merchandise he sells have been being provided at 30% cheaper on Temu. He has since written to Temu a number of occasions, however they don’t seem to be taking down the alleged duplicates, he stated. He’s now contemplating taking authorized motion.

In a press release to CBS Information, a consultant for Amazon stated they “strongly condemn this sort of exercise.” The corporate advises manufacturers who suspect their Amazon product info or photographs are being copied to contact Amazon’s Counterfeit Crimes Unit to allow them to examine. 

The corporate not solely helps sellers “receive and implement their mental property rights” but in addition works to “maintain counterfeiters accountable and cease them from promoting counterfeits wherever,” the spokesperson stated.

In 2022, they seized and disposed of greater than 6 million counterfeit merchandise and the Counterfeit Crimes Unit sued or referred for investigation greater than 1,300 occasions in an effort to cease the sale of counterfeits.