The online marketplace Temu is running a giveaway offering users "free money" in exchange for new sign-ups but some shoppers have raised concerns about its legitimacy.

Temu is known for its extremely cheap goods, and is running a promotion where it says by downloading and sharing your sign-up code with others, you can both earn up to £50 in your PayPal account.

These referrals have gone viral on X (formerly known as Twitter) with some questioning if it's too good to be true and worrying if it's a scam.

One person posted: "Surely something dodgy behind this whole temu thing... How can a company give away free money like that".

Another joked: "This is wild you know, Temu is about to steal your identity & make your clone for the bargain price of £40-£50."

Worries about Temu collecting personal data

Concerns have been raised by the terms and conditions of the referral promotion on Temu and the use of personal data.

The Daily Mail reported: "The rules in the 'Cash Reward' promotion state users agree to give Temu permission to use their 'photo, name likeness, voice, opinions, statements, biographical information, and/or hometown and state' worldwide."

The referral scheme has seen thousands of people take to social media to share Temu codes in order to try and get a cash reward.

Temu issued a statement on the situation, saying: "Temu gathers user information solely for the purpose of delivering our service and to enhance customer experience. We do not sell user information.

"The terms and conditions highlighted are commonplace in similar promotions held by various companies across different sectors."

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What does Which? have to say on Temu?

Discussing Temu's data privacy concerns on its website the consumer watchdog Which? said that it hadn't run the site through its own security testing but was "aware of reports that the app is harvesting users' data".

It added: "We believe greater consideration around these 'legitimate interests' is necessary, and that a better standard to improve transparency for consumers is long overdue.

"We're working with the Information Commissioner’s Office on a code of practice for apps.

"It’s rarely possible to take full control of your data when using an app, but consider following a few simple steps to get a better handle on it whether you’re using Temu or any other app."