European Commission Targets Temu for Illegal Product Sales
The European Commission has launched an investigation into Temu, which is accused of illegal sales and user data misuse, potentially violating Digital Services Act regulations.
European Commission Investigates Temu Platform
The online platform Temu is now under scrutiny by the European Commission (EC). The top consumer protection authority in Europe announced on Thursday that it has opened a formal investigation into the online retailer for selling illegal products, including allowing the return of “rogue merchants” with a history of selling banned products.
Alleged Violations by Temu Platform
In addition to illegal product sales, the EC is also probing Temu’s potentially addictive design, its product recommendation systems, and data access for researchers. These alleged breaches fall under the Digital Services Act (DSA), which allows the EC to impose fines up to six percent of Temu’s annual turnover.
A spokesperson from Temu told Engadget that the company plans to “fully cooperate.” “Temu takes its obligations under the DSA seriously, continually investing to enhance our compliance system and protect consumer interests on our platform,” the Temu spokesperson stated.
Temu Joins Initiative Against Counterfeiting
Furthermore, Temu has indicated that it is in discussions to join the “Memorandum of Understanding on the sale of counterfeit products on the Internet,” an online retailers’ collective initiative (facilitated by the EC) aimed at preventing the sale of fake products in Europe. “We can confirm that we are in discussions to join the initiative,” a Temu spokesperson told Engadget. “Counterfeiting is a challenge for the entire industry, and we believe collaborative efforts are essential to advance our shared goals of protecting consumers and rights holders.”
Other Ongoing Investigations
The United States, typically trailing the EU in regulating major tech companies, stated in September that it might also investigate Temu. Leaders from the Consumer Product Safety Commission have instructed their staff to address concerns about “deadly baby and toddler products” on the platform.
The EC will also examine whether Temu’s systems are designed to prevent the return of previously suspended merchants and non-compliant products. It will investigate the platform’s potentially addictive reward programs and systems to mitigate risks from addictive design choices that could harm customers’ mental well-being. Additionally, the EC will review Temu’s product recommendation settings and verify if the company complies with the DSA requirement to provide researchers with publicly accessible data.