Commission flags major consumer risks on the platform
The European Commission has accused Chinese e-commerce platform Temu of breaching EU digital safety rules by failing to prevent the sale of illegal products. According to a preliminary investigation, shoppers on Temu are highly likely to encounter non-compliant items, including unsafe baby toys and unregulated small electronics.
The allegations stem from a mystery shopping test that exposed widespread availability of products violating EU standards. The Commission said Temu’s risk assessment practices were inadequate and not tailored to the specific risks of its own platform.
Potential penalties under Digital Services Act
If confirmed, Temu could face penalties under the EU’s Digital Services Act (DSA), which mandates stricter oversight by online platforms. The Commission warned that violations may lead to fines of up to 6% of Temu’s global annual turnover and the imposition of corrective measures to improve consumer protection.
“The current evidence shows a high probability of consumers encountering illegal goods,” stated the Commission, emphasizing that the platform’s current policies are not sufficient to safeguard EU buyers.
Temu under broader regulatory scrutiny
The findings are part of a larger investigation into Temu’s compliance with the DSA. Beyond product safety, the platform is being examined for its use of addictive interface designs, lack of transparency in product recommendation algorithms, and limited data access for researchers evaluating its societal impact.
Temu has responded by saying it will “cooperate fully” with the European Commission. A company spokesperson reaffirmed Temu’s commitment to addressing the regulatory concerns raised during the ongoing probe.
Next steps and regulatory implications
The Commission has allowed Temu to respond to the accusations in the coming weeks. While no deadline has been made public, the outcome of this inquiry could set an important precedent for how the EU applies the DSA to foreign platforms operating within the bloc.
With the EU tightening its grip on digital marketplaces, other platforms could also come under similar scrutiny, especially in areas involving consumer safety and data governance. The final decision on Temu’s case may have ripple effects across the global e-commerce industry.