Boston-based Temu discount shopping app actually owned by Chinese-based company

Boston-based Temu discount shopping site actually owned by Chinese-based company

BOSTON - You've seen the commercials. You've seen the ads on your browser and it's one of the most downloaded shopping apps in the past year, Temu.

But what is it?

It's a Boston-based e-retailer that claims to have deals that seem too good to be true on nearly everything.               

"Temu definetly did kind of come out of nowhere," says Julia Belkin. She knows deals. 

Her Tik Tok account Freebies and More has more than one million followers. 

"They've really come out as this major deal hunting powerhouse. You know it's almost like every product you could possibly find on Amazon but 50% cheaper." she told WBZ-TV.

Unlike Amazon, a big component of Temu is earning bonus cash to spend on the site, that can happen through simple gameplay on the app and referring friends.

"You could maybe get 20, 30 cents, two dollars when you're not referring friends," says Belkin. "But when you get to the point when you want 20, 30 or 100 dollars you do have to start inviting people."

Cyber security expert Peter Tran says it's a gimmick to get more people to join.

"The more you can bring into the platform for visibility," explains Tran. "The more free things or rewards that you can get."

And Tran says Temu uses other tactics meant to keep consumers buying.

Tran showed WBZ-TV there are two timers on the site. One counting down before you lose free shipping. The other counting down a supply of items.

"It creates a double sense of urgency and somewhat of a consumer anxiety that they're not going to get this product if they run out of time," says Tran.

Temu says it's Boston-based with a headquarters on St. James Avenue. But it's actually owned by a Chinese-based company PDD Holdings.

"The parent company is based in the Cayman Islands," Tran says.

So, is Temu safe for US consumers to use?

Tran says there are a few red flags, including direct from manufacturer sales.

"There are thousands of vendors in China that are on the Temu platform," Tran explains. "So, your credit card data could be anywhere within those thousands of vendors and you wouldn't know. And that data can be resold."

Data that could include: your name, shipping address, birthday, credit card and shopping habits.

Tran says unlike Amazon and Ebay, Temu is such a new company there are still a lot of unknowns.

"There's a higher degree of vetting and regulation that goes on with that. Temu is not held to the same standards yet," he told WBZ.

Still, those concerns are unlikely to keep shoppers away.

"I don't think there's ever a reason to be using any banking details in any app at all. That being said I have never had any issues with Temu," says Belkin.

We reached out to Temu for an interview, but they did not respond. 

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