Is Temu a Scam?

Our verdict

Over 300 million people have downloaded an app that a U.S. state attorney general called "dangerous harmful software (malware)." Temu is not a scam — it is a real retailer backed by PDD Holdings, a company that trades on NASDAQ (ticker: PDD) and is valued at $150 billion — but its risks go well beyond slow shipping.

Arkansas filed the first state lawsuit against Temu in June 2023, claiming the app works as spyware. A report from Grizzly Research flagged 18 specific types of access to your phone's features (device permissions) the app requests, including clipboard access and location tracking. In 2025, the FTC hit Temu with a $2 million penalty for violating the INFORM Act — for failing to report suspicious sellers adequately. A Canada-wide group lawsuit (class action) has also been filed over Temu's excessive data collection and privacy violations. The CAFC has warned Canadians about suspiciously cheap platforms that harvest personal data at scale.

Product quality is the other gamble. Items ship directly from Chinese manufacturers at prices that seem impossible — $3 headphones, $7 jackets — because they often are. EU consumer testing found 65% of Temu products failed safety standards, and 96% of kids' toys tested failed safety tests. Temu loses money on each order. Analysts at Bernstein estimate the company spends about $30 in cost to get each new customer (acquisition costs) for every new buyer. The deep discounts are subsidized, not fraudulent, but you get what you pay for. CBC Marketplace also exposed Temu's delivery operations in Canada — drivers working 12-hour shifts delivering 120 to 150 packages daily, with one owed $1,800 in unpaid wages.

On the payment side, Temu uses secure payment technology (SSL encryption) and accepts Visa, Mastercard, PayPal, and Apple Pay. There is no credible evidence of payment data theft. The Purchase Protection Program covers refunds for items that never arrive or differ significantly from the listing — and in practice, most refund requests are honored without requiring a return.

Shipping takes 7 to 20 business days from China. That alone kills the experience for many Canadian shoppers used to Amazon Prime's two-day delivery. During peak seasons, some buyers report waits of 30 days or more.

The facts: shop through the mobile browser — not the app — and pay with a virtual card or PayPal. Expect dollar-store quality at dollar-store prices. If you treat Temu like a flea market rather than a department store, the experience is manageable. Installing the app, however, gives a company with documented data collection concerns full access to your device.

Editorial note: This article reflects the state of publicly available information at the time of writing. Business practices, ownership, and safety records change over time. TrustChekr is not affiliated with any company reviewed here and does not receive payment for editorial coverage. Verdicts are based on documented evidence and are subject to revision.