Brussels demands accountability from Temu in illegal sales probe
The European Commission is requesting explanations from Temu. The Chinese online sales platform must provide the EU with evidence that it addresses the sale of illegal products. This is the second such request the Commission has sent to Chinese platforms in recent months.
The Temu service has until October 21st this year to respond. After that, Brussels might decide to take action against the platform, including imposing financial penalties.
Temu is classified by the EC as a "very large online platform." This classification means that the service must comply with the provisions of the Digital Services Act (DSA). What does this entail?
The platform is required, among other things, to empower and protect online users (including minors) and to properly assess and mitigate any systemic risks arising from its services. The regulation also requires monitoring to ensure that counterfeit, dangerous, and intellectual property-infringing goods are not sold on the platform.
EC spokesperson Thomas Regnier noted on Friday that sales platforms must remember that consumer protection in the European Union is very high.
The EC also demands details from Temu about the steps taken to prevent the dissemination of illegal products, as well as information about recommendations displayed to users and the use of users' personal data.
Brussels scrutinizes sales platforms
In June, a similar request for explanations was sent to another Chinese platform, Shein.
At the end of September, six EU countries called for action against Temu and Shein. Germany, Poland, France, the Netherlands, Austria, and Denmark sent a letter to the European Commission.
"They pose serious risks to consumers and disrupt fair competition within the European internal market - affecting not only retailers but also manufacturers of consumer goods. To ensure fair competition and protect consumers in the EU, it is essential to strictly enforce compliance with applicable EU regulations by manufacturers and e-commerce platforms, including those products coming from third countries," reads the letter sent to the EC.
