The European Commission said on Monday that Chinese e-commerce platform Temu is in breach of the Digital Services Act (DSA) for not properly assessing the risks of illegal products it sells on its website.
The preliminary findings come after the Commission opened an investigation into Temu under the DSA – legislation which aims to counter illegal content and products online – in October last year.
Evidence shows that there is a high risk that EU consumers find illegal products on the platform, such as baby toys and small electronics, the Commission’s statement said.
“Temu's risk assessment of October 2024 was inaccurate and relying on general industry information rather than on specific details about its own marketplace. This may therefore have led to inadequate mitigation measures against the dissemination of illegal products,” the statement added.
Henna Virkkunen, EU Tech Commissioner said: "In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act. Consumers’ safety online is not negotiable in the EU – our laws, including the Digital Services Act, are the foundation for a better protection online and a safer and fairer digital Single Market for all Europeans."
Temu now has the chance to respond in writing to the findings. In case a breach is found, the Commission can impose a fine of up to 6% of the company’s worldwide annual turnover.
A Temu's spokesperson told Euronews: "We will continue to cooperate fully with the European Commission."
The EU investigation continues in relation to Temu’s other suspected breaches of the DSA, including the effectiveness of its mitigation measures, the use of addictive design features, the transparency of its recommendation systems, and its access to data for researchers.
Illegal and non-compliant products
The DSA became applicable to all online platforms in February 2024. The Commission has begun several probes into companies including X, Facebook and Instagram, Shein and AliExpress.
None of the investigations have been wrapped up yet: X has also received preliminary findings in its investigation last summer, making that the most advanced case.
Last January, consumer protection group BEUC provided proof of illegal and noncompliant products sold on Temu’s market place. Tests carried out by their national members showed that toys made with toxic chemicals, or with parts that could easily strangle or choke children are available on the website - alongside lava lamps that cause electrocution and bike helmets that do not protect cyclists when falling.
The Chinese giant is also under a consumer protection probe opened by the Commission and national consumer authorities. Their preliminary findings indicate that Temu engages in illegal practices like fake discounts, misleading reviews or gamification of shopping.
This article has been modified to include Temu's comment.
