Expert issues warning on popular shopping app over data fears: ‘There is a risk’

In the digital age, the convenience of online shopping has become a staple in our daily lives, particularly for those who appreciate the ease of having goods delivered straight to our doorsteps.

However, with this convenience comes a responsibility to be vigilant about our online safety, especially when engaging with newer e-commerce platforms.

One platform that has caught the attention of cybersecurity experts is a budget online retailer, popular for its ultra-cheap household products.


Since its launch a year ago, PDD Holdings-owned Temu has seen millions of downloads and monthly users.

In Australia, 1.2 million people shop with the Temu app every month.

However, beneath the surface of bargain deals, a potential threat to customer's data privacy lurks.

Cybersecurity expert Susan McLean recently voiced her concerns on Sunrise, highlighting the inherent risks associated with online shopping.


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Online shopping platform Temu has been a go-to for affordable goods, but it’s being questioned by experts for their cybersecurity policies. Image Credit: Temu Australia


'We know that Temu is collecting a lot of data,' McLean stated.

'But the problem is people simply download the app and click “I accept” without understanding what they're actually accepting.'

With the excitement of a new shopping avenue overshadowing the need to read the fine print, this is a common pitfall.


The issue, however, is not just about data collection.

McLean also pointed out the annoyance of being inundated with follow-up emails after making a purchase, a tactic used to keep customers engaged and potentially lead to further spending.

Graham Cooke, Head of Consumer Research at Finder, added another layer of caution, advising shoppers to be wary of the quality of off-brand merchandise sold on Temu.

Products may look similar to leading brands but often fall short in performance.

He used headphones and smartwatches as examples, where the items may appear identical to established brands but may lack sound quality, battery life, or compatibility with common operating systems.

Cooke also warned against the 'urgency' trap, where platforms create a false sense of scarcity and time pressure to encourage impulsive purchases.

This ‘gamification’ of shopping, he said, can be persuasive and could lead to regrettable decisions.


In response to these concerns, a Temu spokesperson has stated that it does not sell customer data and that its data practices are ‘in line with industry standards’.

‘At Temu, we prioritise the protection of privacy and are transparent about our data practices,’ they said.

‘Temu collects information for the sole purpose of providing and enhancing its e-commerce service to users. Temu does not ask for system permissions to access things like your photos, contacts, or location. Temu does not share financial data with vendors.’

Temu also maintains that it works with its online marketplace vendors to ensure accurate product descriptions.

They also implement a comprehensive system to identify and remove non-compliant products.

Despite these assurances, consumers must stay informed and cautious.


Here are some tips to help you stay safe while enjoying the benefits of online shopping:

  1. Read the Privacy Policy: Take the time to understand what data they are collecting and its possible use.
  2. Monitor Your Accounts: Regularly check your bank statements for unauthorised transactions.
  3. Use Strong Passwords: Keep your accounts protected with strong, unique passwords.
  4. Be Sceptical of Urgency: Do not let time-limited offers pressure you into making quick decisions.
  5. Check Reviews: Look for reviews and feedback from other customers about product quality and their shopping experience.
Key Takeaways

  • Cybersecurity experts have warned that online budget retailer Temu could be risking customers' data security.
  • The parent company PDD Holdings, now headquartered in Ireland, has a large user base with 1.2 million Australians using the app monthly.
  • Shoppers are advised to be cautious of the 'urgency trap' and to be aware of the quality of off-brand products that do not match leading brands' performance.
  • Temu insists that customer data is safe and their data practices align with industry standards, promising transparency and a commitment to privacy protection.
Have you used Temu or other online shopping platforms? What precautions do you take to ensure your online safety? Share your insights in the comments below.
 
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It sounds a lot like the popularity of Temu is making merchants who rip us off a little worried. Keeping safe is not rocket science … use the website and not the app! I am very happy with the things I have bought from Temu … nothing at all wrong with the quality.
 
I too am a regular user at Temu. I have also had a lot of admiration for the products I have received. they have enabled me to buy a lot of dies for my cards that would have cost me much more if I bought from a shop that adds mark up to their profit.I am very happy with my purchases from them . The only downfall with them is that they start off with a top of$25 witch quickly raises to $45 but not everyone can afford to pay that out of our meager pension.
 
I have only used Temu twice, the first the clothes were good. I got a 2nd delivery last week and one of the items is so poorly made, but what can you expect for the price. I dont' use this platform very often and would use more well known stores for most things.
 
I along ;with most people; click through and accept the terms and conditions. What can go into those terms and conditions should be regulated by Government.
 
I have been shopping at Temu since it opened I have never had a problem, if I do not receive a item I simply email them I am directed to the order to click on the item that I did not I received full credit for the item immediately without hesitation I don't know any other online store that will do the same thing credit is given in about 2 minutes max.
Everything I have purchased I am very pleased with the quality and especially the price they are much cheaper than any other online store I am purchasing from.
The only thing is it takes about 10 days to receive what you have ordered that is the only thing that I can say is wrong with Temu but the advantages well do the disadvantages.
 
I too am a regular user at Temu. I have also had a lot of admiration for the products I have received. they have enabled me to buy a lot of dies for my cards that would have cost me much more if I bought from a shop that adds mark up to their profit.I am very happy with my purchases from them . The only downfall with them is that they start off with a top of$25 witch quickly raises to $45 but not everyone can afford to pay that out of our meager pension.
When I was told I had to buy a minimum of $45 I spoke with the bot which pops up and said I wouldn't be buying from them again due to the minimum spend well they instantly wiped the minimum and now I spend just the amount I want to spend. Don't let them dictate to you what you want to spend. I have bought elastic (which is good quality) from Temu as well as other things some are good and some are just okay.
 
I shop regularly with Temu, regularly finding things that cost a lot less than available locally. Yes it takes time for things to arrive. However, I have never had an issue with products that don't make the grade or don't appear. Refunds are very quick to appear as one goes through the process.
 
My name is Lucy,one of your SDC readers always looking forward to my morning update after my breakfast and coffee.I only used TEMU merchandise a couple of times and so far,there was no problem with quality.
What concerns me,is the fact about the gathering 0f info.from their clients.
Although my purchase is by paypal,I did not realise that my privacy might be compromised.
Maybe,online purchases are all the same.
And who bothers reading the fine prints and privacy of the so long term and conditions when the thrill of seeing the product/products gives you the "high" and want to have it/them straight away?
 
I’m more than happy with TEMU. If I need anything I check there first. Yes the constant emails can be annoying but, as with a lot of the spam get I just delete without reading. If you shop on line you can expect to have your data recorded.
 
I have just ordered my 5th purchase from Temu - I only buy wooden puzzles from them. I do NOT get any other emails from them and I am very happy wth their service. I have a CC which I only use when purchasing from them and I only transfer the payment amount into it at a time. I do not buy anything else online. I use my computer and their website.
 
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I shop at TEMU and I love it. I do it through my desktop computer. Everything is collecting data if you "INTERNET" .... not here and there, it's everything, everywhere you go on the net. If you have a smart TV, smart phone, etc. guess what, data data, if you and someone else sitting in the lounge talking, and your phone of tv is on, it collects data from you's talking. If you talk about cats, the next thing you get spammed with cat ads.
 
I have been using Temu for some time now - the website, not the app.
I have absolutely no complaints about their service. If you have an issue with a purchase, they deal with it immediately, and they refund you with no questions.
Also, a big plus, there are no postal charges with Temu.
The quality of their items is excellent, their delivery is efficient and quick, and their prices are brilliant.
Most of my friends and colleagues use them now and, personally, I have stopped using ebay as I find their prices too high and their postage costs too expensive.
I think this article has been prompted because other suppliers are feeling threatened, and has nothing to do with the quality, price or access to your data.
All the other sites have exactly the same systems, so why no questions about them?
 
The security of your details is important, but cannot be guaranteed to be private as their are scammers out there who can penetrative even the stoutest of defences. I was lucky last week that my bank caught an intrusion on my account and blocked it before damage could be done.
 
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I purchased some clothing items for my (very) little grandson from Temu and carefully checked the the quality, it is comparable to what you can get at Best & Less.
Grandson is now walking and wearing his new clothes, puts a bit of old packing tape on his head as a crown and struts around like he is a king. Haha "The King and His New Clothes"
 

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