This is something Temu would have done well without. The European Commission has just launched an investigation against the Chinese e-commerce giant which it suspects of selling illegal or even dangerous items. If found guilty, the service could face a fine of up to 6% of its annual turnover under the Digital Services Act (DSA).
Details of the accusations against Temu
Quoted in a press release, the Competition Commissioner, Margrethe Vestager, underlined:
We want to ensure that the products sold (on Temu’s platform) comply with EU standards and do not put consumers at risk.
As indicated by our colleagues from Releasethese investigations will focus in particular on “the systems put in place to limit the sale of non-compliant products in the European Union” and in particular the means implemented “to prevent the reappearance of unwanted, previously suspended traders” for this reason.
The European authorities will also look into “the risks linked to the addictive design of the service” online sales, including rewards programs “likely to have negative consequences on the physical and mental well-being of users”.
The service’s product recommendation systems will also be scrutinized. We know that European legislation forces web giants to show their credentials on these different parameters. Europe has not set a deadline for carrying out its investigation.
Temu’s response
A company spokesperson spoke:
Temu takes its obligations relating to the Digital Services Regulation very seriously and continually invests to protect the interests of consumers. We will fully cooperate with regulators.
At the beginning of October, the company also explained that it had “took significant steps” since the spring and she continued to refine her methods “under the Digital Services Regulation”.
Temu is a hit in France
As a reminder, these Chinese platforms have gained considerable importance in recent years in France. The director of La Poste, Philippe Wahl, has just revealed before the Senate Economic Affairs Committee that the Chinese services Shein and Temu represent 22% of the packages processed by the public company.
Moreover, this share is more significant in France than in our neighbors, which underlines the popularity of these Chinese companies in our regions. To find out more, you can always reread our dedicated article here.
