Temu, the Chinese-owned online marketplace, has been linked to a massive European advertising campaign that relied heavily on fabricated influencer accounts on Meta's Instagram and Facebook platforms. Data from the Czech non-profit Online Risk Labs indicates that up to $962 million was spent on such ads between January 2025 and April 2026, with the content often generated by artificial intelligence.
Fake creators dominate Temu's partnership ads
The research identified 183,000 followers for a purported Instagram creator named Ya Lily, who promotes Temu products with low-effort AI-generated videos. However, the account appears to be a dummy, and similar fake profiles dominate the top 100 creators boosted by Temu. In fact, 73 of those accounts are likely fictitious, and many have changed their handles dozens of times, a behaviour unheard of among genuine influencers.
Online Risk Labs estimates that Ya Lily's posts were part of more than 109,500 Temu ad campaigns, averaging about 225 campaigns per day. Across the United Kingdom and 27 EU member states, these partnership ads amassed over one billion impressions in a 16-month period.
Why the practice matters for Europe
EU regulators are increasingly scrutinising deceptive advertising under the Digital Services Act (DSA) and the newly adopted AI Act, which require clear labelling of AI-generated content. In the United Kingdom, the Digital Markets, Competition & Consumers Act of 2024 bans misleading advertising outright.
"Creating a fake account to carry advertising is likely to be a breach of regulations in multiple European jurisdictions," said Stuart Lester, partner at Mishcon de Reya's advertising and marketing group.
Legal experts warn that portraying non-existent individuals as real influencers could constitute a breach of these rules, exposing Temu to enforcement actions and fines.
What comes next?
Online Risk Labs has submitted its findings to the European Commission's DSA regulator, urging a risk assessment of Temu's influencer network. Meanwhile, Meta has declined to comment on the specific accounts, though the platform has previously struggled to curb fraudulent advertising, especially from China.
Industry observers suggest that while Temu may be exploiting a cost-effective loophole, the trend of AI-augmented creator content is set to grow. As regulators tighten transparency requirements, the company may need to overhaul its ad strategy to comply with European law.
For now, the spotlight remains on Temu's $962 million spend and the shadowy ecosystem of fake creators that helped deliver it across Europe.