Temu invested nearly a billion dollars in ads – but a major problem has emerged

Meet "Ya Lily," an internet star with hundreds of thousands of followers on Instagram and Facebook, promoting products for the Chinese retail giant Temu. She is considered the company's leading content creator in Europe, but a new study by an independent organization reveals that she likely does not exist in reality. Lily is just the tip of the iceberg of an entire industry of fake accounts that generates AI-based advertising videos and pumps huge sums into social networks.

A billion dollars on fake accounts

According to the study, out of the top one hundred influencers that Temu promotes on Meta's networks, about 73 are likely fake accounts. These are temporary accounts designed solely to exploit the advertising budgets of the retail giant. The vast majority of them have changed their name at least once, and many of them are operated from Russia and China, despite targeting a European audience. Only eight accounts out of the hundred were verified as having a real identity.

The scale of the phenomenon reveals Meta's massive economic dependence on the Chinese giant. It is estimated that Temu spent about 962 million dollars on such campaigns in Europe and the UK over 16 months. This amount constitutes almost two percent of Meta's total advertising revenue in Europe. These advertisements, based on collaborations with influencers, account for about 66% of all Temu's advertising ads in the region, an especially anomalous rate compared to other advertisers.

Legal trouble in Europe

The massive use of fake accounts could lead Temu into a severe legal crisis. European and British law prohibits the use of misleading advertising formats and requires full transparency regarding content produced by artificial intelligence. Legal experts clarify that creating fictitious accounts and presenting them as real people recommending products constitutes clear consumer deception, which could lead to heavy fines and sanctions from regulators.

It is unclear whether Temu operates these accounts intentionally to bypass the advertising algorithm, or if it itself fell victim to scammers. Experts in the field estimate that it may simply be a lazy work method of creating dynamic and mass content using artificial intelligence. Either way, this phenomenon is expected to only expand, and it puts to the test the ability of social networks to fight fakes.

We reached out to Temu; their response to the matters will be provided when received.