The European Union has raised concerns over e-commerce platform Temu, a Chinese-founded online shopping app, questioning the company’s efforts to prevent the sale of illegal products on its platform. On Friday, the European Commission requested that Temu provide additional information on its safety measures, citing potential risks to consumer protection, public health, and users’ wellbeing.
Temu, which became a major player in the European market in 2023, boasts approximately 75 million monthly active users in the region. Despite its popularity, the EU is concerned that the platform may not be adequately policing illegal products or preventing traders from repeatedly reappearing on the site after violating rules.
EU’s Concerns and Demands:
The request for information falls under the Digital Services Act (DSA), a landmark EU law that obliges digital platforms to safeguard consumer rights and enforce stricter content moderation policies. Brussels has asked Temu to clarify what specific measures it has taken to:
- Prevent the sale of illegal products by traders on the platform.
- Address risks related to consumer safety, public health, and data privacy.
The EU is also scrutinizing Temu’s use of recommender systems, which deliver personalized content to users, potentially influencing their purchasing decisions. The Commission has expressed concerns that these systems might increase risks to personal data protection.
Temu has until October 21 to provide detailed responses to the Commission’s inquiries. While this request does not imply immediate legal violations, it could lead to formal investigations and financial penalties if compliance failures are confirmed.
Previous Scrutiny of Temu:
This is not the first time Temu has faced EU oversight. In May 2023, it was added to the EU’s list of major digital firms, requiring it to comply with stricter regulations under the DSA. In June, the EU asked Temu to clarify its efforts in safeguarding consumers, including children, and to explain how it prevents deceptive online practices known as “dark patterns” — tricks that lead users into making unintentional purchases or agreeing to unwanted settings.
Moreover, European consumer advocacy groups have raised red flags over Temu’s practices, filing complaints with the Commission in May and accusing the platform of using manipulative techniques to drive excessive spending.
In September, six EU nations — Austria, Denmark, France, Germany, The Netherlands, and Poland — pressed the European Commission to step up its supervision of Temu and ensure stricter compliance with EU regulations.
What Comes Next:
The European Commission is currently awaiting Temu’s response to the latest set of queries. Depending on the answers provided, the Commission may decide whether to launch a formal investigation, which could culminate in sanctions or fines if Temu is found to be in breach of EU regulations.
As the Digital Services Act seeks to enhance consumer protection in the digital realm, platforms like Temu face increasing pressure to uphold ethical practices and comply with stringent EU standards.
