Expert issues warning on popular shopping app over data fears: ‘There is a risk’
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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.
'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:
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.
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.
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:
- Read the Privacy Policy: Take the time to understand what data they are collecting and its possible use.
- Monitor Your Accounts: Regularly check your bank statements for unauthorised transactions.
- Use Strong Passwords: Keep your accounts protected with strong, unique passwords.
- Be Sceptical of Urgency: Do not let time-limited offers pressure you into making quick decisions.
- Check Reviews: Look for reviews and feedback from other customers about product quality and their shopping experience.
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