Investigating Allegations of EU Law Infringements in Temu's Baby Toys and Electronics - Is there a question about if Temu is breaking EU laws in relation to baby toys and electronic devices?
Temu Faces Potential EU Fine for Selling Illegal Products and Violating Digital Laws
The popular online marketplace Temu is under investigation by the European Commission for selling illegal products and violating digital laws under the EU's Digital Services Act (DSA). The Commission has preliminarily found that Temu failed to properly assess and mitigate the risks of illegal and non-compliant products on its platform.
The EU accuses Temu of several breaches, including not stopping the sale of illegal products sufficiently, providing an inadequate and inaccurate risk assessment report, and creating a high risk for EU consumers to encounter dangerous or non-compliant items. If these findings are confirmed, Temu could face a fine of up to 6% of its total global annual turnover, along with stricter regulatory oversight.
The investigation focuses on the sale of illegal products and failure to comply with digital law protections for consumers in the EU. There is no explicit mention of allegations about "false discounts" or "misleading consumer information."
Temu, owned by Chinese firm PDD Holdings, entered the EU market in 2023 and has rapidly gained popularity with tens of millions of active users. The platform is currently under investigation for the sale of illegal products, with unserious traders reappearing on the platform even after being blocked.
The EU Commission's investigation into Temu also includes a review of its practices related to false discount actions, fake reviews, and missing or misleading information about consumer rights. Additionally, the Commission is investigating Temu's practices related to hiding contact information and giving the impression that products are only available for a limited time or are in short supply.
Commission Vice-President Henna Virkkunen stated that consumer safety on the internet is non-negotiable in the EU. The popularity of Temu in Germany and Europe could be a factor in the potential impact of any fines imposed by the EU Commission.
The European Union Commission has found that the Chinese online marketplace Temu is in violation of European digital law. If Temu does not adjust its behavior or cannot or will not refute the allegations, the Commission can formally establish a violation, potentially resulting in a fine. The investigation is ongoing, and any decisions or penalties have not yet been announced.
- The Commission might expand its investigation into Temu, scrutinizing both the marketplace's community policy and its employment policy, as these aspects could significantly impact consumer safety and compliance with digital laws under the DSA.
- To adhere to the EU's Digital Services Act (DSA) and address technology-related concerns, Temu should implement advanced checks and controls to ensure that its platform utilizes secure and up-to-date technologies, reducing the risk of selling illegal products and providing a safer environment for EU consumers.
