What You Should Know Before Shopping on Temu

Online megastore Temu offers a myriad of products at bargain basement prices. But those products may have a hidden cost. Illustration by Justin Sullivan/Getty Images

Online megastore Temu has become an obsession with many Americans. Known for its cut-rate goods, Temu has been shaking up the world of online shopping as people look for bargains in tough economic times.

However, there is also some controversy about the merchandise and deals that Temu has to offer. Its novel business model has its detractors. Shipping and privacy issues with the popular retailer have also been brought to light.

Temu’s Offerings

Online retailer Temu offers just about any product you can think of. Its products run the gambit from car accessories to clothes to home furnishings to electronics.

However, Temu differs from other online stores like Amazon in its pricing strategy.

You can buy a blouse on Temu for $7.92. Steel-toed safety shoes go for $10.39. Or you can pick up a heavy-duty portable utility cart for $12.08 while a similar cart on Amazon would cost $68.85.

Temu is often compared to Wish and AliExpress, which also boast ultra-low prices. All three online stores are also known for lower-quality items, longer shipping times, and a short return window.

Temu attracts customers with its catch phrase “shop like a billionaire.”

Its shockingly low prices, which change frequently, and additional discounts—like its spin-the-wheel game, which offers various merchandise credits up to $200—are hard to resist.

Who Owns Temu

Temu is the sister company of the Chinese e-commerce giant Pinduoduo.

Pinduoduo had similar deals as Temu in China. For the last few years, it successfully sold discounted products straight from manufacturers to buyers. It also sold agricultural products to farmers.

In September 2022, Pinduoduo launched Temu, which is based in Boston. In 2023, Pinduoduo rebranded itself as PDD Holdings, creating a parent company for both Pinduoduo and Temu.

As of Jan. 17, 2024, PDD Holdings had a market cap of $105.57 billion.

Although initially based in Shanghai, Pinduoduo relocated to Dublin, Ireland, in 2023. This is not unusual for tech companies as a tax-saving strategy.

Off-Brands, Quality Concerns

Temu’s tech products are usually not name-brand, unless there is a blue check in their description denoting a name brand. You can buy items like laptops and smartphones from Temu, but they’re usually from lesser-known manufacturers.

While that helps keep prices down, it has also sparked concerns.

In fact, according to a 2023 report by the U.S.-China Economic and Security Review Commission, “Temu’s lack of affiliation with established brands has brought concerns of product quality as well as accusations of copyright infringement,” such as using protected fashion designs, trademarks, logos, or other features without permission.

Dangerous Chemicals

One of Temu’s selling points is its cheap clothing, but the low cost can come with risks.

Testing by the South Korean government detailed in a report last year revealed unacceptable levels of toxic chemicals like lead, cadmium, and phthalate plasticizers in clothing sold by Temu.

Phthalates are often added to plastics to increase flexibility, or to cosmetics and toiletries to carry fragrances. Certain phthalates are classified as endocrine disrupters, meaning they can mimic, block, or interfere with hormones, with harmful health effects including reproductive issues, developmental problems, or cancer.

Regarding the Seoul report, a Temu spokesman said in a statement at the time, “These products had already been removed from our platform through proactive monitoring before the report was issued.”

However, a slew of recent reports link ultra-fast fashion clothing made in China—where Temu’s manufacturers are located—to chemicals that can cause health problems, from rashes to reproductive issues to autoimmune disorders.

According to a 2023 report by the Center for Biological Diversity, fast fashion garments can contain a variety of harmful chemicals, which “come with risks of irritation, respiratory, developmental, and reproductive problems; and certain cancers.”

Cutting Out the Middleman, Avoiding Duties

Temu sells its goods for low prices by cutting out the middleman. It doesn’t use distributors. Instead, goods are delivered directly from Temu’s manufacturers located in China.

Shipping directly from the manufacturer helps the discount retailer improve inventory and supply chain efficiency. It lowers production costs and provides low prices for users.

Temu’s business model has also taken advantage of the United States’ de minimis loophole.

The de minimis value is the threshold price an imported item must reach before a country’s duty is charged. Although most countries have this trade rule, its threshold value varies.

In the United States, the de minimis value is anything over $799. That means items imported are subject to duty when the value is over $799.

This loophole has helped keep shipping costs down for Temu.

That’s because when customers order from Temu, individual items are shipped directly from the Chinese manufacturer. The result is that the shipments are kept under $800, so the duty doesn’t apply.

In other words, thousands of dollars worth of products can be shipped to the United States by Temu, but because they are in small quantities, they are duty-free.

Leveraging the de minimis loophole may also allow products made with Uyghur forced labor to enter the United States, because the small shipments are less likely to be screened for compliance with the Uyghur Forced Labor Prevention Act.

That’s going to change, however. On April 2, President Donald Trump signed an executive order eliminating de minimis exemption for low-value imports from China. The new rule goes into effect on May 2.

Privacy Concerns

Although many apps mine user data to improve sales, Temu takes this strategy to the next level.

According to a report from the Center for Strategic & International Studies, Temu appears to be “as much a data-collection and tool for privacy violations as it is a means of buying cheap goods online.”

In 2022, the report said, over 80 percent of Temu’s revenue came from the sale of advertising services to its network of third-party retailers, consisting of advertising, marketing, and analytics companies.

More alarming, according to the report from the U.S.–China Economic and Security Review Commission, Pinduoduo’s mobile app for Android phones was found to contain sophisticated malware, enabling it to bypass security permissions and access private messages and change phone settings. Google suspended the app from the Google Play store in March 2023, the report said.

Social Media Influencers

Temu has a prominent presence on social media.

Besides running advertisements, the retailer offers an affiliate program through which social media influencers can rack up credits and commissions by promoting Temu products and encouraging followers to download the app.

Influencers who are part of Temu’s program typically receive free products to promote in addition to being rewarded for promoting Temu’s merchandise.

Cheap Goods May Come With a High Price

On the surface, it may look like Temu is a good deal. Although you may save money initially, you may pay in other ways.

First, there is the question of quality and safety. Temu sells off-brand items and clothing that may have harmful chemicals.

Then, there’s the issue of privacy. Temu sells your information to its third-party network.

There’s also the issue of economic safety. Avoiding U.S. tariffs with small shipments harms the economy.

And finally, Temu’s products may not be all that they seem to be. The retailer relies on influencers who receive free products and incentives in return for promoting the discount giant’s products.

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