Temu removes wheels of fortune and shows contact details of sellers

"Hurry up, otherwise you'll miss out!" The online shopping platform Temu tried to persuade customers to make a quick purchase with these and similar slogans. This type of marketing, which puts users under artificial time pressure, is considered unfair in Switzerland and is therefore prohibited.

Temu is now apparently also putting an end to this type of sales promotion. At least this is what the online platform has assured the State Secretariat for Economic Affairs (SECO). According to a press release, the State Secretariat for Economic Affairs has been in contact with the Irish-based company Whaleco Technology, which is responsible for Temu in Switzerland. As a result, Whaleco gradually improved the presentation of the online platform in the short term. According to Seco, the following changes are among the most important:

• In the case of discounts or price comparisons, Temu now specifies that the crossed-out reference price is the product price on Temu immediately before the price reduction.
• The seller's name, address and e-mail address are new.
• User activity in the form of a wheel of fortune no longer appears.
• The indication "Almost sold out" is given when the stock level is between 99 and 20 units and is therefore sold out within a few days. Previously, the indication "Almost sold out" was used for stock levels between 199 and 20 units. A control mechanism ensures that the information is used appropriately.
• Temu removes various information that puts customers under time pressure (e.g. "Hurry up! More than x people have this item in their shopping cart!") or reduce time (for example "Lightning offer").
• Temu also removes various statements from marketing emails that put customers under emotional and time pressure (for example, "We regret to inform you", "Hurry up, otherwise you'll miss out", "You have to do something, otherwise your favorite will be sold out").

Retailers see legislators as having a duty

Whaleco has undertaken to maintain these changes, according to Seco. The negotiations with the online platform were conducted by the authority following complaints from Swiss consumer and retailer associations. The Swiss Retail Federation, which presents itself as the "driving force behind the complaint" in its own press release, is delighted with what has been achieved: Temu's officially signed cease-and-desist declaration marks an important first step towards fairer competitive conditions for the Swiss retail trade. All market participants - whether domestic or international - must adhere to the rules of fair competition, explains the organization.

However, local retailers are not yet completely satisfied. For example, Handelsverband.swiss emphasizes that issues relating to price disclosure and unfair competition have been discussed. However, the organization sees a need for clarification in the areas of product liability, product safety and the return and disposal of electronic devices. The relevant legal bases are sometimes inadequate and may need to be adapted.

For the time being, Temu has nothing to fear from Seco. No legal action against Whaleco is imminent, the authority confirms in the press release. However, Seco would take Whaleco to task again in the event of new complaints regarding the fairness of the offer. (René Jaun/dda/swi)

This article first appeared in Netzwoche.