EU regulators accuse Temu of failing to prevent sale of illegal products
The Commission’s investigation, part of its enforcement of the Digital Services Act (DSA), revealed that EU consumers face a “high risk” of encountering unsafe items - particularly baby toys and small electronic devices - while shopping on Temu.
ADVERTISEMENT
The European Commission on Monday accused Chinese online marketplace Temu of breaching key European Union rules by failing to adequately prevent the sale of illegal and non-compliant products on its platform, Reuters reported.
The preliminary findings, if confirmed, could result in a hefty fine of up to 6% of Temu's annual global turnover.
The Commissions' investigation, part of its enforcement of the Digital Services Act (DSA), revealed that EU consumers face a "high risk" of encountering unsafe items - particularly baby toys and small electronic devices - while shopping on Temu.
These conclusions were drawn from a mystery shopping exercise, which pointed out to a widespread presence of non-compliant goods on the marketplace, the report added.
“The analysis showed that consumers shopping on Temu are very likely to find non-compliant products among the offers,” the Commission said in a statement, as per the report. It also noted that Temu's risk assessment process was inadequate, relying on generic industry data instead of platform-specific insights.
Temu has been given a few weeks to respond to the findings, though an exact deadline has not been specified. As per the report, a company' spokesperson said Temu will "continue to cooperate fully" with the Commission.
The platform is also under the scanner for potentially violating DSA rules related to addictive design features, opaque recommendation algorithms, and restrictions on researcher access to platform data.
If the Commission confirms these violations, it may not only issue fines but also mandate corrective measures to bring the platform into compliance, the report added.
Temu, operated by Chinese firm PDD Holdings, has surged in popularity across global markets, including Europe, by offering steep discounts and a vast assortment of products.
However, its rapid expansion has increasingly drawn regulatory scrutiny, especially concerning consumer safety and data transparency.
