Saturday, May 25, 2024

Chinese online shopping app Temu withdraws ad after what it calls “misunderstandings” – Times of India

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The Chinese online marketplace Temu reportedly scrapped an advertising campaign that offered vouchers in exchange for users surrendering their personal data for an indefinite period. According to a report in news agency AFP, the online marketplace Temu said that it would drop an advertising offer in which clients could gain vouchers in exchange for surrendering their personal data for an indefinite period.
The campaign, launched in England and France this month, promised discounts of up to 100 euros to users who downloaded the Temu app and referred a friend.However, concerns were raised over the data collection terms, which according to British news outlet The Independent, gave Temu the right to use a wide range of personal information for “promotional or advertising purposes in any media worldwide.” This included a user’s photo, name, voice, opinions, and even hometown information.
Temu, owned by Chinese budget retailer Pinduoduo, claimed in a statement to AFP that the offer had been a success in France and resulted in “numerous satisfied clients.” Despite this, the campaign was halted in both countries due to “misunderstandings on the extent of client data use.” Temu clarified that the data collection only involved “usernames and profile pictures.”
The company did not comment on whether the controversial offer was being implemented in other countries. Temu maintains that it is “committed to client confidentiality” and does not sell user data. This comes after Pinduoduo, Temu’s parent company, reported a significant 90% increase in net profit for 2023, reaching 60 billion yuan.

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