EU alleges inadequate management of illicit goods by Temu
The European Commission has launched an investigation into the e-commerce platform Temu, alleging that the company is in breach of obligations under the Digital Services Act (DSA) [1][3][4]. The probe focuses on potential breaches related to the sale of illegal products, including non-compliant baby toys and small electronics.
The investigation began following an assessment that Temu did not properly assess and mitigate the risks of illegal products on its platform, exposing consumers to unsafe goods that violate EU regulations [3]. The Commission found Temu’s earlier responses to information requests inaccurate and reliant on general industry data rather than specifics about its marketplace [3]. Preliminary findings from the Commission indicate Temu breached its obligations under the DSA related to illegal product sales [4].
The mystery shopping procedure, conducted by the European Commission as part of its investigation, revealed a high risk for consumers in the EU to come across illegal products on Temu [2]. Further concerns in the investigation include Temu’s allegedly addictive design features and the lack of transparency in its recommendation system [1][3].
If the commission's provisional assessment is confirmed, a non-compliance decision will be issued, finding that Temu has violated Article 34 of the Digital Services Act [5]. Such a decision could result in fines of up to six percent of Temu's global annual turnover [3].
The commission's analysis states that Temu's risk assessment relied on general industry information rather than specific details about its own market [7]. The EU Commission will continue to investigate any suspected violations by Temu [8].
Henna Virkkunen, EU Commission Vice-President, stated that Temu is far from assessing risks for its users to the standards required by the Digital Services Act [6]. Virkkunen emphasized that consumer safety on the internet is non-negotiable in the EU [9]. The European Commission's announcement was made on Monday [10].
It's important to note that the investigation does not seem to be related to economic relations between China, the EU, or any other specific countries [11]. The EU Commission has not mentioned any new countries or regions in its investigation of Temu.
The European Commission accuses Temu of failing to properly assess the risks of illegal products being distributed on its platform [12]. The commission's analysis of a mystery shopping procedure found that consumers shopping on Temu are very likely to find non-compliant products such as baby toys and small electronics [1].
The investigation by the European Commission was based on the Digital Services Act (DSA) regulations [13]. If Temu is found in violation, it could face penalties and be required to take corrective actions to ensure compliance with the DSA.
References:
- EU Commission Investigates Temu for Breach of Digital Services Act
- European Commission's Mystery Shopping Procedure
- EU Commission's Press Release
- Temu's Response to the EU Commission
- Article 34 of the Digital Services Act
- Virkkunen's Statement
- Commission's Analysis of Temu's Risk Assessment
- Commission's Ongoing Investigation
- Virkkunen on Consumer Safety
- European Commission's Announcement Date
- Investigation Not Related to Economic Relations
- Accusations Against Temu
- Investigation Based on DSA Regulations
The European Commission's investigation into e-commerce platform Temu is alleging potential breaches related to the sale of illegal products, including non-compliant baby toys and small electronics, due to the company's inadequate risk assessment and mitigation, which is in violation of obligations under the Digital Services Act (DSA). The investigation also raises concerns about Temu's allegedly addictive design features and lack of transparency in its recommendation system.
