EU claims retail giant Temu violates European rules: what's it about

The European Commission stated on Monday that the Chinese online marketplace Temu violates EU rules by not doing enough to prevent the sale of illegal products through its platform, UNN reports with reference to Reuters.

Details

The EU's findings could ultimately lead to a fine of up to 6% of Temu's annual global turnover, the European Commission said.

"Evidence has shown that there is a high risk for consumers in the EU to encounter illegal products on the platform," the statement regarding Temu said.

"In particular, a mystery shopper analysis showed that consumers shopping on Temu are very likely to find non-compliant items among the offerings, such as children's toys and small electronics," the statement noted.

The European Commission stated that Temu's risk assessment was inadequate because it was based on general industry information rather than the specifics of its platform.

The statement noted that if the European Commission's preliminary findings are finally confirmed, Temu will be found to be in violation of the Digital Services Act (DSA).

"Such a decision may result in fines of up to 6% of the provider's total global annual turnover and oblige the provider to take measures to remedy the violation," the report said.

An EU spokesperson said that Temu could respond to the EU's findings in the coming weeks, without giving an exact deadline.

A Temu spokesperson said the company would continue to "fully cooperate" with the European Commission.

The findings concern only one aspect of a broader EU investigation into Temu, the European Commission said.

Temu is also suspected of violating EU rules on the use of addictive design elements, the transparency of its recommendation systems, and data access for researchers.

EU launches investigation into Chinese platform Temu31.10.24, 16:59 • 17829 views