EU's Preliminary Findings on Temu's Violations
The European Union has recently announced preliminary findings that suggest Temu, a Chinese online retailer, is likely in breach of the Digital Services Act (DSA). The European Commission highlighted significant concerns regarding consumer safety due to the platform's apparent failure to prevent the sale of illegal and non-compliant products. Reports indicate that items such as baby toys and small electronics sold on Temu pose a 'high risk' to consumers, often failing to meet EU safety standards.
According to the European Commission, Temu's risk assessment submitted in October 2024 was deemed 'inaccurate,' relying on general industry information rather than specific details about its own marketplace. This lack of proper risk evaluation has raised alarms about the platform's ability to protect EU consumers from unsafe goods. The investigation into Temu's practices under the DSA underscores the EU's broader push to regulate large online platforms and ensure accountability.
Broader Implications for Online Retailers in the EU
The scrutiny of Temu is part of a larger effort by the EU to crack down on unsafe e-commerce imports, with other Chinese platforms like Shein also facing similar regulatory actions. As of February 2025, the European Commission has made it clear that such platforms will be held liable for the sale of dangerous products, signaling a tougher stance on compliance. This move aims to address the flood of cheap imports that bypass safety inspections, posing risks to unsuspecting buyers.
The DSA, a comprehensive law designed to protect European consumers, mandates that very large online platforms (VLOPs) like Temu assess and mitigate systemic risks associated with counterfeit goods, unsafe products, and intellectual property violations. Temu was formally designated as a VLOP in 2024, requiring it to adhere to the strictest regulations under the DSA by September of that year. Failure to comply could result in significant penalties, further pressuring online retailers to prioritize consumer safety over cost-cutting measures.
Consumer Risks and Future Outlook
EU regulators have pointed out that shopping on Temu carries substantial risks for consumers, with a high likelihood of encountering non-compliant products. Tests conducted on items sold through the platform revealed alarming statistics, with a significant percentage failing to meet EU legislation standards, many of which were deemed outright dangerous. Categories such as cosmetics, toys, and electrical appliances have been flagged as particularly problematic.
As the investigation continues, the EU's actions against Temu could set a precedent for how foreign e-commerce platforms operate within the bloc. The focus on consumer protection and stringent enforcement of digital rules may push platforms to overhaul their supply chains and vetting processes. For now, the spotlight remains on Temu to address these violations and demonstrate a commitment to safeguarding EU consumers from illegal and hazardous products.