Temu’s Cash Giveaway: Changes to Terms and Conditions in response to privacy concerns

Chinese e-retailer Temu has made significant changes to its cash giveaway promotion after facing backlash from customers concerned about the terms and conditions. The promotion, which has gained popularity on social media, offers participants up to £50 in cash rewards in exchange for sharing personal data.

Initially, Temu defended the broad terms and conditions as standard practice. However, following widespread criticism, the company has now admitted that the terms were overly broad and has adjusted them to address the concerns raised by participants.

The Information Commissioner’s Office, a data watchdog, has been investigating the promotion and has stated that it will continue to assess the issues raised. Temu, a Chinese-owned online marketplace, entered the UK market in 2021 after launching in the US in 2020. The platform has been compared to “Amazon on steroids” for its low prices and expansive product range.

Despite its popularity, Temu has faced scrutiny from politicians and government agencies. A US government investigation found a high risk that products sold on Temu could have been made using forced labor, raising ethical concerns about the platform’s supply chain practices.

The giveaway promotion requires new users to sign up others using a shareable link within 24 hours in order to receive cash rewards. Existing users can also participate, but may have to meet a higher threshold for rewards. While the promotion has attracted thousands of participants eager to earn money, it has also sparked discussions on social media about the privacy implications of sharing personal data.

One contentious section of the terms and conditions stated that participants give consent for Temu to use their personal information, including photos, names, and biographical details, for advertising and promotional purposes. This raised concerns about data privacy and the potential misuse of personal information by the company.

Following public outcry, Temu has revised the terms and conditions to clarify that only usernames and profile pictures will be used for referral purposes and winner announcements. The company has also reassured customers that it does not sell customer data and is committed to maintaining customer trust and satisfaction.

Legal experts have raised concerns about the original terms, noting that they may have violated UK data protection rules by requiring users to consent to the use of sensitive personal data in exchange for rewards. The Information Commissioner’s Office has emphasized the importance of transparency in data collection and usage, stressing that organizations must clearly explain how and why they collect personal information.