Brussels (Brussels Morning Newspaper) – The European Union on Monday accused Temu, a Chinese-founded e-commerce giant, of violating the EU’s Digital Services Act (DSA) by failing to adequately assess the risks associated with illegal products.
The European Commission revealed that it has found the Chinese e-commerce giant Temu in breach of the bloc’s Digital Services Act (DSA) after it failed to assess risky and illegal products on its online marketplace.
Temu, one of the few online platforms providing heavily discounted goods that usually ship directly from China, has been under investigation by the EU Commission since October. The investigation, initiated as a DSA probe, concerns multiple issues, including the sale of illegal products.
Why has the EU accused Temu of DSA breaches?
The Commission announced its preliminary conclusion today, stating that Temu has not adequately evaluated the risks associated with products sold on its marketplace. The finding is based on a risk assessment report that Temu submitted to the Commission last October, as required by the regulations DSA.
It
“primarily looked at general issues for online marketplaces and not specific issues with respect to its own marketplaces,”
A Commission officeholder informed reporters during a background briefing earlier today.
What risky products are being sold on Temu?
European consumers are also quite likely to encounter unsafe products on Temu, such as toys and small electronics, based on a Commission “mystery shopping exercise” carried out for its DSA oversight.
What other issues is the commission investigating?
Unsafe products are just one part of the Continuous inquiry of Temu by the Commission. The Commission is also considering other areas of concern, such as addictive design, recommender systems and transparency requirements, among others.
According to an EU official, following the release of initial findings, Temu has been given a few weeks to respond. The Commission did not establish a deadline for several reasons, such as Temu’s right to reply regarding the findings.
Temu has been the subject of a consumer protection investigation since November of last year. The investigation is subject to EU consumer protection law and is being undertaken in conjunction with national authorities from various countries, including Belgium and Ireland.
