EU spotlights on Temu: 'Counterfeit or dangerous items'

There is still Temu in the crosshairs of Brussels. In recent hours, the European Commission has announced that it has intensified its investigation into the Chinese eCommerce platform. And the accusation is that it does not have adequate tools to assess and prevent the sale of illegal or dangerous products within the EU market.

According to Brussels, Temu - a low-cost eCommerce giant owned by the Chinese holding company - is allegedly violating the Digital Services Act, the legislation regulating digital content in the EU space. In more detail, the preliminary investigation apparently found that the risk assessment conducted by the Chinese company last October was inaccurate. And verifications conducted directly by the Commission, including through some randomly purchased products, would have shown that European users are exposed to a high risk of receiving counterfeit or unsafe products, including children's toys and electronics.

"In our view, Temu falls far short of the standards required by the Digital Services Act for assessing the risks to its users," said EU Digital Commissioner Henna Virkkunen. "Online consumer safety is non-negotiable in Europe."

The investigation, it should be recalled, had been launched last year, under the DSA, with a list of allegations including the use of manipulative designs to keep users on the platform and ineffectiveness in countering the sale of illegal goods. In parallel, another investigation based on EU consumer protection rules is ongoing, targeting unfair commercial practices such as fake reviews and misleading discounts.

As per the regulations, Temu will now have the opportunity to respond to the allegations or propose corrective measures. If it fails to do so, the company risks fines of up to 6 per cent of its annual global turnover, as stipulated in the Digital Services Act, which has very stringent penalty measures.