The European Commission has initiated proceedings against the Chinese online marketplace Temu, alleging violations of the Digital Services Act (DSA). The Commission announced on Monday that it has provisionally determined Temu is failing to meet obligations stipulated by the DSA regarding the assessment of risks associated with the distribution of illegal products on its platform.
An analysis conducted by the Commission has revealed a significant risk to consumers within the EU, who may encounter illicit goods while shopping on Temu. Specifically, a “mystery shopping” exercise exposed a high probability of encountering non-compliant products, including baby toys and small electronics, being offered for sale.
The Commission’s assessment suggests that Temu’s risk assessment, conducted in October 2024, was inadequate. Instead of relying on specific data related to Temu’s own marketplace operations, the assessment appears to have been based on general industry information. This, according to the Commission, may have resulted in insufficient measures to mitigate the proliferation of illegal products. The Commission has indicated it will continue to investigate further potential breaches of the DSA by Temu.
Should the Commission’s preliminary findings be formally confirmed, it will issue a non-compliance decision, asserting a violation of Article 34 of the Digital Services Act. Such a decision could lead to substantial fines, potentially reaching up to six percent of the provider’s worldwide annual turnover.
“Consumers shop online because they trust that the products sold in our internal market are safe and comply with our regulations” stated EU Commission Vice-President Henna Virkkunen. “From our preliminary perspective, Temu is far from assessing the risks to its users in line with the standards required by the Digital Services Act”. The safety of consumers online remains non-negotiable within the EU.
