EU probe finds Temu in breach of DSA
The European Commission has preliminarily found that Chinese online retailer Temu has breached EU law on the sale of illegal products.
According to the EU body, evidence from its investigation shows that there is a “high risk” that consumers in the EU will encounter illegal products on the platform.
The commission’s mystery-shopping exercise found that consumers shopping on Temu were “very likely” to find non-compliant products, such as baby toys and small electronics.
Risk assessment ‘inaccurate’
The investigation, opened in October last year, is examining whether Temu is complying with its obligations under the EU’s (DSA).
The DSA is aimed at addressing what the commission says is a rise in unsafe, counterfeit, or non-compliant products arising from a surge in online shopping.
The EU body described Temu's risk assessment from October 2024 as “inaccurate”, adding that it relied on general industry information, rather than on specific details about its own marketplace.
It says that it will continue its investigation into other suspected breaches, which include the effectiveness of Temu’s mitigation measures, the use of addictive design features, the transparency of its recommendation systems, and its access to data for researchers.
Fines
Temu is now entitled to exercise its rights of defence by examining the commission's investigation file and by replying in writing to the preliminary findings.
If the findings were confirmed, the platform could face fines of up to 6% of its total worldwide annual turnover, as well as an order to take measures to address any breaches of the DSA.
“In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act,” said commissioner Henna Virkkunen.