Following the investigation by the Hungarian Competition Authority (GVH), the European operator of the Temu online marketplace will refund a total of at least 882 million forints (2.26 million euros) to Hungarian consumers and pay a fine of 437 million forints (1.12 million euros) to the central budget, Index reported.
In March 2024, the authority launched a competition supervision proceeding against Whaleco Technology Limited (Whaleco), the European operator of the Temu online marketplace.
Temu. Photo: Pexels
According to the allegations, the company operating Temu engaged in unfair commercial practices that could have misled consumers. The GVH found that
the operator falsely created the impression of price reductions, could not substantiate the validity of discounts of “up to 95%” (or higher), and admitted that in certain cases these were not available.
The statement noted that the company listed products as being on sale when no discount was actually available, published urgent-sounding messages designed to put consumers under psychological pressure, and made misleading environmental and sustainability claims.
Whaleco cooperated with the GVH during the proceedings, acknowledged the violations identified, and waived its right to appeal. The company committed to developing a comprehensive consumer protection compliance program and to paying 2,000 forints (around 5 euros) in monetary compensation to every Hungarian consumer who made a purchase on the Temu website or app between November 2023 and September 2024.
Affected consumers will receive a dedicated activation link via email, through which they can provide their bank account number or the relevant information required to use secure, widely accepted alternative payment methods.
If the refunds paid to consumers and verified by the GVH do not reach 882 million forints, the company operating Temu is required to pay the difference into the central budget in the form of a fine.
Taking into account the consumer compensation undertaken, the comprehensive consumer protection compliance program, and other cooperation measures, the Competition Council of the GVH ordered the operator of Temu to pay an additional fine of 437 million forints.
The company must fully implement the mandatory commitments (compliance program, consumer compensation) within one year, and the GVH will thoroughly verify this as part of a follow-up investigation, officials said.
Via Index; Featured photo: Pexels
