Super Bowl viewers might have noticed Temu, an e-commerce platform that offers discounted rates enabling customers to “shop like a billionaire.”
As per the latest Apple rankings, the company’s app surged to the second position among the most downloaded free apps on Apple devices.
This marketplace provides discounted versions of a wide array of products, ranging from drones and jewelry to sneakers. Despite its offerings, Temu has encountered challenges related to customer dissatisfaction, data security risks, and inadequate oversight concerning the potential use of forced labor within its supply chain.
When approached by ABC News for a comment, Temu did not respond promptly.
In a statement to The AP in June, Temu asserted a “zero tolerance” policy towards forced labor and highlighted measures taken to ensure compliance with U.S. regulations.
The company emphasizes on its website that it places significant importance on data security. While acknowledging sharing some data with third parties to enhance services, Temu clarifies that it does not “sell” personal information in the conventional sense.
Temu, in a statement to Time in 2022, mentioned that its ability to offer competitive prices is facilitated by a “deep network of merchants, logistic partners, and Pinduoduo’s established ecosystem built over the years.”
According to a 2022 financial report, Temu operates as an American subsidiary of the Chinese e-commerce giant Pinduoduo, a widely recognized app in China catering to over 750 million users monthly.
Launched in 2022, Temu replicates the business model of its parent company by offering a wide range of products at discounted rates. Additionally, customers can earn store credits by engaging in games on the platform or promoting it on social media.
For instance, as per the company’s website, a pack of four “Oprah-style reading glasses” is priced at \(13.97, an American flag-themed collared shirt costs \)8.90, and a pair of hook earrings is priced at $3.14.
On March 21, 2023, a smartphone in Hong Kong, China, displayed the branding of PDD Holdings Inc.
Temu’s standard delivery timeline extends up to 23 days due to the international location of many providers. Express shipping, available at an extra cost of $12.90, guarantees delivery within 12 days.
Temu informs that tracking may not be accessible for every stage of the shipping process as regional carriers may handle certain aspects of the delivery.
The Better Business Bureau assigned Temu a C+ rating, noting the resolution of 1,625 customer complaints in the preceding 12 months.
Being a privately held entity, Temu does not frequently disclose financial metrics like size and profitability.
A report from the U.S. House Select Committee on the Chinese Communist Party in June 2023 highlighted that the company ships millions of items annually to the U.S. from approximately 80,000 sellers listed on its platform.
On March 21, 2023, a smartphone in Hong Kong, China, displayed the PDD Holdings Inc. branding.
Getty Images, FILE, Chan Long Hei/Bloomberg
Temu offers standard delivery times of up to 23 days due to the international presence of its providers. For expedited shipping within 12 days, customers can opt for express delivery at an additional cost of $12.90.
Temu received a C+ rating from the Better Business Bureau, which highlighted the resolution of 1,625 customer complaints in the past year.
As a privately held firm, Temu does not frequently disclose operational details such as size and profit.
The House report also raised concerns about potential forced labor within Temu’s supply chain, particularly emphasizing the issue of forced labor exploitation of Muslim-minority Uyghurs in Xinjiang Autonomous Region. The report suggests that American consumers should be cautious about the likelihood of forced labor involvement in Temu’s supply chains.
