Chinese e-retailer Temu adjusts cash giveaway terms after backlash: What you need to know

Chinese e-retailer Temu has sparked controversy with its recent cash giveaway promotion, which required participants to hand over significant amounts of personal data in exchange for up to £50. The promotion, which went viral on social media, faced backlash from customers concerned about privacy issues.

Initially, Temu defended the terms as “standard,” but after facing scrutiny and pressure from customers, the company announced that it had “tweaked” the terms to address the concerns raised. The Information Commissioner’s Office, a data watchdog, stated that it would continue to monitor the situation.

Temu, often referred to as “Amazon on steroids,” is known for offering products at extremely low prices and has gained popularity in the US and the UK since its launch. The promotion, which required users to share a link to sign up others in order to receive cash rewards, attracted thousands of participants eager to cash in on the offer.

However, concerns were raised about the broad language in the terms and conditions, which granted Temu permission to use participants’ personal data for advertising and promotional purposes indefinitely. Critics, including consumer law experts and data protection professionals, questioned the proportionality and legality of such requirements.

In response to the backlash, Temu clarified that it would only use usernames and profile pictures for referral functionality and winner announcements, emphasizing that customer trust and satisfaction are top priorities for the company. The retailer also denied allegations that it would sell customer data or create deepfake advertisements.

As the controversy continues to unfold, experts urge consumers to carefully consider the implications of sharing sensitive data in exchange for cash incentives. The data regulator emphasized the importance of transparency and informed consent when collecting and using personal information.

Overall, the Temu cash giveaway promotion serves as a reminder of the growing concerns surrounding data privacy and the need for companies to prioritize clear and transparent communication with their customers.