The European Commission, the European Union’s highest regulatory authority, has launched an official investigation into online retail platform Temu. The commission investigated allegations that Temu allowed the sale of illegal products and failed to restrict previously banned “problem sellers” from accessing the platform again.EU investigation into Temu
The accusations against Temu are being evaluated under the European Union’s Digital Services Act (DSA). DSA requires platforms to ensure user safety and take measures to prevent the spread of illegal content. Companies that fail to comply with the law may face fines of up to 6 percent of their annual revenue.
In its statement, Temu stated that it takes its obligations under the DSA seriously, has made investments to strengthen its compliance and is determined to ensure the safety of consumers. The company emphasized that it will fully cooperate with the authorities and work to create a reliable marketplace.
The company is also in talks with the European Commission to join the “Memorandum of Understanding on Preventing the Sale of Counterfeit Products”, a cooperation agreement that brings together online retailers to prevent the sale of counterfeit products on the internet. Temu representative said, “Counterfeiting is a sectoral problem and we aim to protect consumers by cooperating on this issue.”
It will also be investigated whether it is addictive or not.
The investigation initiated by the European Commission also includes examining Temu’s addictive design, product recommendation systems and elements that may threaten the mental health of users. In particular, there are concerns that some gamification and reward systems on the platform may make users addicted. In addition, the Commission will evaluate whether Temu complies with its obligation to provide open data to researchers.
The EU’s investigation into Temu does not have an end or target date. The commission will first convey its findings to the company and request that it fix them, or it will find no problems and close the case. If Temu does not comply with the relevant decisions, it is also possible that he will face criminal proceedings. Meanwhile, regulatory authorities in the US are also planning to take action against Temu.
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