Tuesday, April 16, 2024

China’s Temu Drops Ad Campaign Over Personal Data Use Fears

Temu’s promotional offer in France and England, offering vouchers in exchange for personal data, was halted due to client data use concerns. Parent company Pinduoduo reported increased profits.

Temu, the Chinese online marketplace, announced on Saturday that it would no longer be offering vouchers in exchange for personal data after facing backlash. The controversial advertising campaign promised clients up to 100 euros in vouchers if they downloaded the Temu shopping app and referred someone to sign up. However, the terms of the offer allowed Temu to use much of a client’s personal data indefinitely, without notice. This included personal information like photos, names, and hometowns for advertising purposes.

The campaign, which had been successful in France but quickly halted due to misunderstandings in both France and Britain, was part of a larger effort by Temu’s parent company, Pinduoduo, to compete with industry giant Alibaba. Pinduoduo reported a 90% increase in net profit for 2023, reaching 60 billion yuan ($8.3 billion). Despite the success of the campaign, Temu stated they are committed to client confidentiality and do not sell client data.

Although Temu did not comment on whether the promotional offer was still active in other countries, they emphasized their dedication to protecting client data. The controversial advertising campaign has shed light on the importance of online user privacy and the potential risks associated with exchanging personal information for rewards. Temu’s decision to discontinue the offer reflects a growing awareness of the need for transparency and data protection in the online marketplace.

Source : China’s Temu Drops Ad Campaign Over Personal Data Use Fears

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