The European Commission has preliminarily found that Chinese e-commerce platform Temu violated the EU’s Digital Services Act (DSA) by failing to assess and mitigate the risks of illegal products on its platform. A mystery shopper investigation found that EU consumers are likely to encounter unsafe items, such as non-compliant baby toys and electronics.
Temu’s October 2024 risk report was deemed inadequate, relying on generic industry data rather than platform-specific risks. If confirmed, Temu could face a fine of up to 6% of its global revenue and stricter regulatory oversight.
Temu, operated by Chinese tech firm PDD Holdings, is one of four China-based platforms designated as Very Large Online Platforms (VLOPs) under the DSA. The case reflects growing European scrutiny of Chinese cross-border e-commerce, with rival Shein also under regulatory pressure in the EU and France calling for stricter controls. Temu has not yet responded to the EU’s findings. [Reuters]
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