The fastest-growing retail site right now is Temu.
If you are on Facebook, Instagram or TikTok, you've probably seen its ads even if you haven't used it.
We recently did a report on the incredible deals people are finding on the site, which some call a discount version of Amazon.
But more and more questions are coming in about how safe it is to use after the filing of a lawsuit claiming it may be looking at your online activity.
Those questions come even though shoppers love Temu.
The Chinese-owned online retailer has exploded in popularity, thanks to thousands of items for under $20, from clothing to organizers, pet items and more.
Becca Raco has been thrilled with many of the inexpensive items she's bought from Temu since it launched in June 2022.
"I've gotten items for under $10, and on Amazon, they were over 30," she told us.
Some were less than a dollar.
"I love my little Q tip holder," she said, "and they come out here at the bottom."
Better Business Bureau reports growing complaints
But the Better Business Bureau recently raised concerns about the retailer, after more than 1,000 complaints in just over one past year, about:
- Poor quality items.
- Delivery delays.
- Credit card overcharges.
The BBB gives it a C rating.
Lawsuit claims it is collecting too much information
But a New York law firm, Troy Law, is going further, and recently filed a class action suit, on behalf of a shopper, Eric Hu, claiming Temu may be placing spyware into your phone that can track personal information.
"There are concerns about Temu allegedly intercepting private and personal information from its users, so they can generate revenue," attorney Tiffany Troy said.
Troy also claims Temu monitors more personal information than other retailers.
"It may be tracking your cell phone ID, which shows which cell phone you’re using, and your location," Troy said.
What you can do
If you have become addicted to getting those orange Temu packages in the mail every week or so, you don't really want to stop shopping there.
So Becca Raco has some suggestions.
She says she only shops Temu with PayPal, So the site does not have any of her banking information.
"No I don't put my debit card in there," she said.
Temu and its owner, PDD Holdings, are not commenting on the lawsuit.
But the BBB says it is now working with the company to resolve the BBB's concerns.
Bottom line: As with any online retailer, just use common sense and keep track of your bank account, that way you don't waste your money.
___________________________________________
"Don't Waste Your Money" is a registered trademark of Scripps Media, Inc. ("Scripps").
Follow John:
- Facebook:John Matarese Money
- Instagram: @johnmataresemoney
- Twitter: @JohnMatarese
For more consumer news and money saving advice, go to www.dontwasteyourmoney.com
