Europe fines Temu 200 million: 'Risks for consumer safety'
Brussels accuses Temu of not adequately assessing product quality, with high risks for European consumers and possible additional sanctions in case of non-compliance
From our correspondent Beda Romano
BRUSSELS - The European Commission announced today, Thursday 28 May, that it has imposed a fine of EUR 200 million on the Chinese company Temu, accused of violating the rules of the Digital Services Act (DSA). In particular, the Chinese company allegedly failed to diligently assess the quality of products offered online. The data available to Brussels shows that EU consumers are very likely to come across illegal articles on Temu.
Security risks and illegal products
Under indictment are the rules that the Chinese platform has given itself in managing its online offer. The risk analysis, the European Commission explains in a communiqué published here in Brussels, is carried out on the basis of general guidelines, relating to e-commerce rather than to Temu's specific offer. Moreover, the Chinese company itself has a promotion and marketing system that in fact multiplies the risks of dissemination of illegal products.
The results of the EU survey
"The results of a survey," adds the EU executive, "show that a very high percentage of the selected battery chargers failed basic safety tests, while a high percentage of the children's toys tested presented safety risks of medium to high severity, as they contained chemicals that exceeded legal safety limits or posed choking hazards due to the presence of detachable parts.
The request for a corrective plan
Temu has until 28 August to submit an action plan to correct its actions. Once this plan is accepted by Brussels, the company will have 'a reasonable period' to put it into practice. Otherwise it will be called upon to pay periodic fines. The EU initiative comes after several consumer associations in various European countries have recently expressed concern about the online presence of illegal products. Criticised besides Temu are also the platforms Shein and AliExpress.
The College of Commissioners will hold a meeting on Friday 29 May that will focus on the future relationship with China against a background of growing concern about Chinese competition, especially in the industrial field. There is a fear of witnessing a deindustrialisation of Europe. Some countries, including France and Italia, are calling for more trade protectionism. Still others are wavering, although the concerns, as mentioned, are palpable.
