EU investigates Temu over illegal products
October 31, 2024
The European Commission opened an investigation into the Chinese online shopping platform Temu on suspicion the site is doing too little to stop the sale of illegal products.
"We want to ensure that Temu is complying with the Digital Services Act. Particularly in ensuring that products sold on their platform meet EU standards and do not harm consumers," European Competition Commissioner Margrethe Vestager said in a statement on Thursday.
Temu said it would cooperate with the EU.
Temu faces scrutiny over counterfeit goods and 'addictive design'
In May, the European Commission classified Temu as a "very large online platform" under the DSA. It requires the world's largest tech firms to do more to protect European consumers online.
Worried about counterfeit items being sold on Temu, Vestager wants to know what systems Temu has in place to crack down on curb "rogue traders" selling "non-compliant goods" as well as how the platform restricts their "reappearance."
The Commission is also concerned about the aggressive sales tactics and the "potentially addictive design" of Temu, including "game-like" reward programs.
It could face hefty fines, as high as six percent of its global turnover, if the company is found to be in breach of the act.
Temu considers joining European anti-counterfeit group
Temu has rapidly expanded in Europe with aggressive marketing, attracting millions of users through its slogan "shop like a billionaire" and offering low prices on a wide range of products.
The Commission said that it had 92 million monthly active users in the EU in September.
"We will cooperate fully with regulators to support our shared goal of a safe, trusted marketplace for consumers," a Temu spokesperson said in a statement.
The company is also considering joining a group of e-commerce platforms and brands that collaborate to prevent the sale of fake products online in Europe.
The "Memorandum of Understanding (MoU) on the sale of counterfeit goods online" is a voluntary agreement facilitated by the European Commission, signed by online retailers like Amazon, Alibaba, and eBay, as well as brands such as Adidas, Nike, Hermes, and Moncler.
lo/kb (AFP, dpa, Reuters)