The European Commission found that the Chinese online shopping platform Temu is not doing enough to stop the sale of illegal products.
The Commission’s preliminary findings indicate the Chinese online retail giant was violating rules set by the Digital Services Act (DSA).
“Evidence showed that there is a high risk for consumers in the EU to encounter illegal products on the platform,” a press release on Monday stated.
Temu is classified as a “very large online platform” under the DSA. It requires the world’s largest tech firms to do more to protect European consumers online. Temu has nearly 94 million average monthly active users in the European Union.
Temu under investigation
It comes after the European Commission launched a formal investigation into Temu’s business model in October.
Prominent on the EU executive arm’s long list of complaints is the claim that Temu is exporting products to the EU that do not comply with the bloc’s standards.
“We shop online because we trust that products sold in our Single Market are safe and comply with our rules. In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act,” European Commission Vice President Henna Virkkunen.
The Commission also accused the online retailer of offering fake discounts to customers, publishing fake reviews, insufficient vendor information, and having an addictive app design.
Temu can respond to the allegations, but if concerns remain, the EU may declare a DSA violation and impose a fine of up to 6% of its global annual turnover, though no final decision has been made.
A Temu spokesperson said the company would continue to “cooperate fully” with the Commission.
“Consumers’ safety online is not negotiable in the EU – our laws, including the Digital Services Act, are the foundation for a better protection online,” Virkkunen said.
Edited by: Saim Dušan Inayatullah
