Online retailer Temu under scrutiny for selling allegedly unlawful goods as per EU claims - Online marketplace Temu faced accusations by the EU for selling products deemed as illegal.
The European Commission is taking a firm stance against online marketplaces selling illegal and non-compliant products, with budget fashion platform Shein and China-based platform Temu under investigation for potential breaches of EU consumer protection laws and online platform regulations.
In a recent development, the EU Commission has found Temu in breach of the Digital Services Act (DSA) for selling illegal and non-compliant products on its platform. The Commission's investigations, which included mystery shopping exercises, uncovered unsafe items such as baby toys and small electronic devices. Temu has been given the opportunity to respond and defend itself, but no final decision has been announced yet.
The investigation also includes other potential breaches like the use of addictive design features. If the violations are confirmed, Temu could face fines of up to six percent of its total worldwide annual turnover, as stated by the DSA. Besides fines, the EU can require Temu to make operational changes to better police content and product safety on its platform.
The DSA empowers the EU to enforce stronger consumer protections and hold large online platforms accountable for illegal goods and harmful practices. This move is part of a broader EU effort targeting major tech platforms failing to protect consumers and combat unsafe products online.
Meanwhile, Shein is also under investigation for potential violations of EU consumer protection laws and online platform regulations. The current status is that the investigation is ongoing, and no definitive findings have been announced yet.
It is worth noting that a risk assessment conducted by Temu in October 2024 was criticized as being defective. This underscores the need for online marketplaces to take consumer safety and regulatory compliance seriously.
Both Temu and Shein have pledged full cooperation with the European Commission. However, addressing the regulatory concerns is crucial for these platforms to avoid formal sanctions. The EU Commission's actions serve as a reminder that online marketplaces must adhere to strict consumer protection laws and regulations to operate within the EU.
References: [1] European Commission (2022). Press Release: EU takes action against online marketplaces selling illegal and non-compliant products. [Online] Available at: https://ec.europa.eu/commission/presscorner/detail/en/IP_22_6325 [2] European Commission (2022). Q&A: Digital Services Act. [Online] Available at: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12527-Digital-Services-Act_en [3] Temu Spokesperson (2022). Statement on EU Investigation. [Online] Available at: https://www.temu.com/news/eu-investigation-statement
- The European Commission is investigating budget fashion platform Shein for potential breaches of EU consumer protection laws and online platform regulations, similar to the ongoing investigation against China-based platform Temu.
- If found guilty of violating EU consumer protection laws and online platform regulations, both Shein and Temu might face fines of up to six percent of their total worldwide annual turnover, as enforced by the Digital Services Act (DSA).
