🛒 Complaints Filed Against Temu
Consumer protection groups across the EU have filed complaints against Temu, a Chinese-owned e-commerce platform, for violating the Digital Services Act (DSA). These groups, represented by the BEUC, accuse Temu of failing to meet transparency and safety standards. Penalties for confirmed breaches could be as high as 6% of Pinduoduo’s $35B annual revenue. Temu recently reported having 75M monthly users in the EU, triggering stricter oversight.
🔍 Alleged Breaches of the DSA
The complaints allege that Temu fails to comply with several DSA requirements, such as trader traceability, rules against manipulative design, and transparency around product recommendation algorithms. Monique Goyens, BEUC’s director general, said, “Temu is rife with manipulative techniques that push consumers to spend more, leaving them in the dark about who they are purchasing products from.”
⚖️ Calls for VLOP Designation
BEUC is urging the EU to designate Temu as a "very large online platform" (VLOP) under the DSA, which would subject it to additional transparency and accountability rules. This status is already held by platforms like Alibaba, Amazon, and Google Shopping. If designated as a VLOP, Temu would have to mitigate systemic risks and ensure better traceability of traders.
💬 Temu’s Response
Temu responded by describing itself as a newcomer to the region, committed to taking feedback and aligning with local expectations. The company entered into a cease-and-desist declaration with Germany’s vzbv and expressed willingness to address the BEUC's concerns. "We are committed to transparency and full compliance with all applicable laws and regulations," Temu stated.
Do you think Temu should be designated as a VLOP?
