Holiday shoppers should beware of some online marketplaces, particularly Temu, as they’re looking for deals, a consumer advocacy organization warns.
In a new report, the Consumer Federation of America outlines several lawsuits by attorneys general around the country against Temu, alleging among other things that the China-based low-cost retailer has inadequate safety warnings, counterfeit products, false reference pricing, manipulated reviews, deceptive quality representations and misleading local tags.
USA TODAY was given an exclusive look at the report.
“Consumers expect and deserve safe products. Regardless of where consumers are purchasing their products, whether that’s brick and mortar or online, they deserve and expect that those products are all safe,” Courtney Griffin, director of consumer product safety for CFA told USA TODAY.
A Temu spokesperson provided a statement to USA TODAY in response to the concerns raised by CFA and attorneys general: “The complaints’ allegations are factually incorrect and legally flawed, and our motions to dismiss the complaints are pending before the courts. We welcome and seek proactive engagement with and feedback from regulators and other stakeholders and are continuously seeking ways to make our services better for our users.”
Online sales are expected to hit $253.4 billion this holiday season, according to Adobe. That’s 5.3% growth over last year. Among holiday online shoppers, 17.2% of overall sales are expected during Cyber Week, or the five-day period from Thanksgiving to Cyber Monday.
Cyber Monday will remain the biggest online shopping day of the year at $14.2 billion, up 6.4% from last year, according to Adobe. Black Friday online sales are expected to be $11.7 billion, up 8.3% from last year.
In a report, “Holiday shoppers beware: online marketplaces present serious consumer protection crisis,” CFA aggregated several existing actions filed by state attorneys general around the country against Temu to highlight the concerns.
Among them:
While the CFA’s report predominantly took aim at Temu and its practices, there are other online marketplaces that also have questionable practices, Griffin said. But not all online marketplaces are unsafe, she said.
“It is important to note that most sellers and most manufacturers are probably complying (with rules),” she said.
CFA provided some shopping tips to consider while buying online:
Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@USATODAY.com or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which breaks down complex consumer and financial news. Subscribe here.