Think Twice Before Holiday Shopping on Temu
Holiday shoppers should be wary of some online marketplaces, particularly Temu, according to a new report from the Consumer Federation of America.
The report outlines several lawsuits by attorneys general across the country against the China-based discount retailer. Allegations include inadequate safety warnings, counterfeit products, false pricing, manipulated reviews, deceptive quality claims, and misleading "local" tags.
Consumers expect and deserve safe products," said Courtney Griffin, director of consumer product safety for CFA. "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.
Temu responded with a statement denying the allegations: "The complaints' allegations are factually incorrect and legally flawed, and our motions to dismiss the complaints are pending before the courts."
The Stakes Are High
Online sales are expected to hit $253.4 billion this holiday season, according to Adobe. That's 5.3% growth over last year.
Cyber Monday will remain the biggest online shopping day at $14.2 billion, up 6.4% from last year. Black Friday online sales should hit $11.7 billion, up 8.3%.
With that much money flowing through online marketplaces, consumer protections matter.
What the Lawsuits Say
CFA's report aggregated existing actions filed by state attorneys general against Temu. Here's what they're claiming:
Inadequate safety warnings: Twenty-one attorneys general raised concerns in August 2024 that Temu doesn't adequately warn shoppers about product dangers or safety recalls.
Counterfeit products: Complaints from Nebraska (June 2025) and Kentucky (July 2025) said Temu's platform is "awash in products infringing copyrights and other intellectual property." Counterfeit products are often substandard and don't meet safety regulations, Griffin said.
Questionable quality: Nebraska, Kentucky, and Arkansas complaints allege Temu misrepresents product quality. Issues include undelivered packages, poor customer service, and low-quality products that don't match claims.
Fake pricing: Retailers on Temu may create the impression of deep discounts by providing fake or inflated original prices. They also use "gamification techniques" like spinning wheels to encourage impulsive purchases.
Manipulated reviews: Complaints allege some reviews are fake or skewed, preventing shoppers from making informed decisions.
Misleading "local" tags: Nebraska's complaint called Temu's use of "local" tags deceptive. Consumers might assume that means locally made. Actually means shipped from a U.S. warehouse, even if the product came from overseas.
Not Just Temu
While CFA's report focused on Temu, other online marketplaces also have questionable practices, Griffin said. But not all are unsafe.
"It is important to note that most sellers and most manufacturers are probably complying" with rules, she said.
Shopping Tips
CFA provided tips for buying online safely:
Too good to be true? Low prices could mean low quality or products that don't meet safety standards.
Is it safe? Recent investigations found some online marketplaces aren't adequately screening products or warning about recalls. Check the U.S. Consumer Product Safety Commission at cpsc.gov for recalls and safety warnings.
Reviews may be fake: Recent investigations and legal actions found some reviews can't be trusted.
Watch for counterfeits: Counterfeit products are often substandard or fail to meet safety standards.
Protect your data: Some sites may not have adequate consumer protections. Be careful sharing sensitive information.
The Bottom Line
Temu offers incredibly cheap prices on everything from clothing to electronics. Those prices attract millions of shoppers looking for deals, especially during the holidays.
But multiple state attorneys general are suing the company over various consumer protection issues. That's not just one state with an axe to grind. That's 21 attorneys general raising safety concerns and multiple states filing lawsuits about counterfeits, fake reviews, and misleading practices.
Temu says the allegations are "factually incorrect and legally flawed." Their motions to dismiss are pending in court. So nothing's proven yet.
But when that many state attorneys general file complaints raising similar issues, it's worth paying attention.
Does that mean never shop on Temu? Not necessarily. But maybe check if products have been recalled before buying. Read reviews skeptically. Don't assume rock-bottom prices mean you're getting the same quality as higher-priced alternatives.
And if something seems too good to be true—$5 for something that costs $50 everywhere else—it probably is.
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