Is Temu Legit or a Scam? All You Need To Know Before You 'Shop like a Billionaire'

Temu, a shopping app that made its way into the market in the United States in September 2022 before launching in Canada, Australia, and  New Zealand back in March. It arrived in Germany, the Netherlands, Spain, and the UK in April last year. The reason it has taken over social media is of course the "too good to be true" price tags. 

However, there have been security concerns regarding the app. People are trying to find out more and more about the app before actually hitting the checkout button. Here's a look at the Chinese-based shopping app, Temu, and how it became the talk of the town. 

What is Temu? Is it Safe To Use?

Like Shein and Ali Express, Temu is also a Chinese-owned e-commerce giant that is focusing on the Western market. Like the other businesses, the brand new e-commerce platform also realizes the importance of affordable prices. 

The platform allows vendors based out of China to sell and ship directly to customers. This means there is no retailer, it's simply a marketplace. 

Currently, Temu is owned by the parent company, PDD Holdings which is headquartered in Boston, US. While the parent company is listed in the US stock market, it is still a Chinese company and their flagship product is the Chinese e-commerce platform Pinduoduo Inc which was founded in 2015. The company was founded by billionaire Colin Haung. The company was initially based out of Shanghai but later moved to Dublin. 

Concerns around the app

The platform has faced a few security concerns. A report by Grizzly Research shows that the app can take more user data than it needs to operate. In the past, Apple removed Temu from the App Store for unknown reasons. It is also a known fact that the US government is keeping a close eye on the app and the company has already been investigated over its data use. 

There have also been discussions about the business model of the company and the question of its longevity has also been raised. The primary goal of the company right now is to capture mindshare.

Comparison to Shein

Temu and Shein do not seem to get along with each other. According to Tech HQ, Shein said that Temu was misleading customers into believing that they were the same brand. Later, Temu said that Shein was using “exclusionary practices”. While Shein mostly focuses on fashion, you will find anything and everything under the sun on Temu. 

Is Temu Legit or a Scam? 

Temu is a marketplace that sells products at ultra-low prices. While on the surface the ultra-cheap prices may make you second guess buying from the platform, it's in no way a scam. Having said that, the reviews are mixed and many people have taken to social media to share their negative buying experiences. 

According to reports, many US lawmakers said that there is an "extremely high risk" of Temu selling from third parties that have manufacturers using forced labor. 

Bruce Winder, a Toronto-based retail analyst and author, tells DW, "All technology platforms to one extent or another recognize data as a strategic asset, and Chinese platforms have just been more brazen about snooping on users."

However, the reality is that in the current situation, threats like security concerns and environmental protection are often overruled by crazy prices and that's how the platform is seeing so much traffic daily. Many consumers are ready to take a chance because of their financial conditions and that is the reality.