Chinese direct purchase shopping app Temu is stirring controversy in South Korea by attracting new members with cash-like credit points and free gifts through fishing-like events. Consumers have criticized Temu’s ambiguous prize events as “consumer deception” and “multi-level personal information scams.”
As of Feb. 21, industry sources report dozens of critical posts regarding Temu’s baiting events and the spread of “Temu scam” content, primarily across YouTube and TikTok. The term “Temu scam” refers to the act of participating in Temu’s events to get free goods or showcasing cheaply purchased items from Temu.
Recently, Temu has been running an event offering credits that can be used like cash through a roulette mechanism. To earn more credits, participants need to recruit friends or acquaintances as new members.
Users participating in the event are creating unboxing content of their Temu purchases to recruit members and earn free credits. This has led to the trend of “Temu scamming” becoming popular among young consumers who frequent platforms like TikTok and Instagram.
However, Temu has failed to fulfill its promise of rewarding users who successfully recruit new members. According to DC Inside, a consumer with the nickname IpipXX reported that despite entering three acquaintances’ phone numbers as referrals, Temu did not provide the promised 100,000 credits.
Temu’s app rules state that inviting six new app users guarantees the first reward, and up to 60 new users must be invited to receive free gifts. However, the button to access these rules is made very small, making it difficult for most users to be aware of them.
Additionally, Temu advertises to consumers that they can obtain a coupon bundle worth 130,000 won only after making a specific payment amount, using the significant discount as bait to encourage payments. The 130,000 won coupon bundle is not immediately usable but consists of coupons that offer discounts after spending a certain amount.
Users have expressed their displeasure, feeling like they are being baited into a continuous cycle of payment for the next discount or free product rewards, as if they are being “fished.”
Temu, by offering ultra-low-priced products, is rapidly encroaching on the South Korean market, posing a threat to local online retailers.