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I personally think Temu is just a way to convince people to install their app, and the products are sold at a loss.

I refuse the app and order only via website.

This wouldn't surprise me. Almost the entirety of Facebook/Meta and Google products are loss leaders for ad tech. Why not a shopping site?

Potentially because it is owned by a Chinese firm. To my knowledge, China has a very diverse and relaxed law around data privacy.