🛒 EU sharpens focus on Temu’s illegal products
Temu, a Chinese e-commerce giant, is under increased scrutiny from the European Union over the sale of illegal goods on its platform. The EU has requested more detailed information on how Temu complies with the Digital Services Act (DSA), which mandates platforms to reduce risks to users, especially regarding illegal products, public health, and minor protection. Penalties for non-compliance can reach 6% of the platform’s global turnover. Temu has until October 21 to respond to these queries, or it might face formal investigations.
📝 May complaints put Temu under pressure
Back in May 2024, consumer protection groups filed complaints, urging the European Commission to investigate Temu. Their concerns included how the platform traces sellers, preventing them from returning to sell illegal items, and its manipulative design tactics. The complaints led to increased EU oversight, especially after Temu was designated a Very Large Online Platform (VLOP) in May. This designation brought an extra layer of accountability under the DSA, including transparency on how Temu's algorithms recommend content to users.
💡 DSA requirements: Risk mitigation and transparency
The Digital Services Act requires platforms like Temu to identify risks, including those tied to illegal product sales and public health, and provide proactive solutions. The regulation also demands that platforms reveal details about how their algorithms work, especially for recommender systems. As of September 2024, Temu had to align with these rules. The EU now wants to see how effectively Temu identifies problem sellers and what measures it takes to ensure consumer safety, transparency, and data protection.
📢 Consumer groups demand stricter action
Consumer groups, led by the European Consumer Organisation (BEUC), have been vocal about the risks Temu poses to users. BEUC's policy officer, Fernando Hortal Foronda, criticized Temu for its lack of transparency and failure to protect consumers from dangerous products. "We believe Temu is failing consumers and is likely breaking the law," he said. These consumer groups hope that the Commission’s latest actions will force Temu to make urgent changes and protect users from harmful practices.
Should platforms like Temu face heavier fines for non-compliance?
