EU Regulators Say Temu Isn’t Doing Enough to Prevent Sale of Illegal Products
The European Commission has issued a sharp warning to Chinese e-commerce giant Temu, accusing the fast-growing online retailer of exposing European consumers to a flood of potentially illegal and unsafe products.
In preliminary findings released Monday, the Commission outlined multiple concerns about the platform’s compliance with the Digital Services Act (DSA)—a sweeping set of rules enacted to better protect internet users across the European Union.
The investigation into Temu, launched last year, is part of a broader effort by EU regulators to hold digital marketplaces accountable for what they host and promote.
According to the Commission, Temu’s current safety protocols may fall well short of the standards required by EU law. Investigators say a recent “mystery shopping” operation uncovered several non-compliant items being sold on the platform, including baby toys and small electronic devices.
While the Commission did not specify which laws these items violated, it noted that the rapid growth of online shopping in the EU has led to a corresponding spike in counterfeit and unsafe products entering the market. There is “a high risk for consumers in the EU to encounter illegal products” on Temu’s website, the Commission said in its statement.
It pointed to “inadequate mitigation measures” and criticized Temu’s internal risk assessments for being overly reliant on generic industry benchmarks rather than on specific data from its own marketplace.
“Temu is a priority for us. The problems caused on the European market by non-compliant products coming from online marketplaces are an issue.”
Henna Virkkunen, the EU’s Executive Vice-President for Tech Sovereignty, Security, and Democracy, emphasized the seriousness of the situation in a news release.
“We shop online because we trust that products sold in our Single Market are safe and comply with our rules. In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act.”
Temu, a subsidiary of Chinese tech firm Pinduoduo Inc., has seen explosive growth in recent years by offering ultra-low-cost products, ranging from fashion to home goods, primarily shipped from Chinese vendors.
It currently boasts 92 million users across the EU and 185.6 million in the United States. However, the platform’s rise has also drawn scrutiny for how it manages seller activity and monitors product safety.
When they launched the probe, EU authorities stated that they would examine whether Temu was taking sufficient action to find and combat “rogue traders” or vendors who allegedly sell non-compliant or counterfeit goods, get suspended, and then quickly return under new identities. In its preliminary findings, the Commission deemed Temu’s approach to be insufficient.
The Commission says it will also look into other suspected rule violations on Temu, including the platform’s “addictive design features, the transparency of its recommendation systems, and its access to data for researchers.”
In a brief response, Temu stated that it “will continue to cooperate fully with the Commission,” but did not address the specific findings.
Under the DSA, platforms found in violation could face fines of up to 6% of their global annual revenue. They may also be ordered to take concrete steps to bring their operations into compliance.
Before the EU watchdogs reach a final conclusion, the company will have the opportunity to review the Commission’s investigative files and address the allegations.
As European authorities ramp up enforcement of the DSA, the outcome of this case may set a significant precedent for how global e-commerce platforms are held accountable for the goods they deliver to doorsteps.
Moumita Basuroychowdhury is a Contributing Reporter at The National Digest. After earning an economics degree at Cornell University, she moved to NYC to pursue her MFA in creative writing. She enjoys reporting on science, business and culture news. You can reach her at moumita.b@thenationaldigest.com.
