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Holiday shoppers looking for bargains should be wary of some online marketplaces, especially Temu, consumer advocacy groups have warned.
In a new report, the Consumer Federation of America outlines several lawsuits by attorneys general across the United States against Tem, alleging, among other things, that the China-based low-cost retailer has inadequate safety warnings, counterfeit products, false reference prices, manipulated reviews, deceptive quality claims and misleading local tags.
USA TODAY had exclusive coverage of this report.
“Consumers expect and deserve safe products. Whether they buy products in a brick-and-mortar store or online, they have a right to expect that all of those products are safe,” CFA Director of Consumer Product Safety Courtney Griffin told USA TODAY.
A Temu spokesperson issued the following statement to USA TODAY in response to concerns raised by the CFA and the Attorney General. “The allegations in the complaint are factually incorrect and legally flawed, and our motion to dismiss the complaint is pending in court. We welcome and seek active engagement and feedback with regulators and other stakeholders, and we continue to seek ways to make our services even better for our users.”
Online holiday sales are big business
According to Adobe, online sales this holiday season are expected to reach $253.4 billion. This is a 5.3% growth compared to last year. For online shoppers during the holiday season, Cyber Week, the five-day period from Thanksgiving to Cyber Monday, is expected to account for 17.2% of all sales.
Adobe said Cyber Monday remains the biggest online shopping day of the year, with sales increasing 6.4% year over year to $14.2 billion. Black Friday online sales are expected to be $11.7 billion, an 8.3% increase from last year.
Consumer group highlights suspicious behavior by Temu
In its report, “Holiday shoppers beware: Online marketplaces pose a serious consumer protection crisis,” CFA compiled several existing lawsuits filed against Tem by state attorneys general across the country to highlight its concerns.
among them:
- Improper safety warning: In August 2024, 21 attorneys general expressed concern that Temu was not adequately warning shoppers about the risks associated with its products and whether they were subject to safety recalls.
- Counterfeit products: Complaints by attorneys general in Nebraska (June 2025) and Kentucky (July 2025) say Temu’s platform is “filled with products that infringe copyright and other intellectual property,” and that “counterfeit products are often substandard and may not meet existing safety regulations,” Griffin said.
- Questionable quality expression: A complaint filed in 2025 by the attorneys general of Nebraska, Kentucky, and Arkansas alleges that Temu misrepresents the quality of its products to consumers. Complaints include undelivered packages, poor customer service, and poor quality products that don’t match Temu’s claims.
- False or exaggerated pricing or urgency: Temu retailers can create the impression that products are being sold at deep discounts by offering false or inflated list prices or using “gamification techniques,” such as spinning a wheel and offering discounts, to encourage impulse purchases, the complaint alleges.
- Questionable reviews: The complaint alleges that some reviews about Temu are false or distorted, preventing shoppers from making informed decisions.
- Is it really “local”? The Nebraska complaint cited Thame’s use of the “local” tag as deceptive. CFA said that even if the original product came from a foreign country, consumers may think that means the product was manufactured domestically if that means it was shipped from a U.S. warehouse.
Although the CFA report primarily focuses on Temu and its practices, Griffin said there are other online marketplaces with questionable practices. But not all online marketplaces are dangerous, she said.
“It’s important to note that most sellers and most manufacturers are probably in compliance (with the rules),” she said.
Online shopping tips for consumers
CFA provided some shopping tips to consider when purchasing online.
- Is it too good to be true?: A low price for a product may mean it is of low quality or does not meet safety standards.
- Is the product safe? A recent investigation found that some online marketplaces do not adequately screen products or provide recall warnings. For product recalls or safety warnings, contact the U.S. Consumer Product Safety Commission (www.cpsc.gov).
- Reviews may not be accurate: Recent investigations and legal action have found some reviews to be unreliable.
- Beware of counterfeit products: Counterfeit products are often substandard or may not meet safety standards.
- Please be careful when handling personal data. Some sites may not have adequate consumer protection in place. Please be careful when sharing sensitive information.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Contact her at blinfisher@USATODAY.com or follow her at @blinfisher on X, Facebook and Instagram and @blinfisher.bsky.social on Bluesky.. Sign up for our free The Daily Money newsletter, breaking down complex consumer and financial news. Subscribe here.
