The European Commission has launched formal concerns regarding the online marketplace Temu, alleging potential violations of the Digital Services Act (DSA). The Commission announced Monday that it has provisionally determined Temu is failing to meet obligations stipulated by the DSA regarding the proper assessment of risks associated with the proliferation of illegal products on its platform.
An analysis conducted by the Commission revealed a significant risk to EU consumers encountering non-compliant products while shopping on Temu. Specifically, a “mystery shopping” exercise indicated a high probability of users encountering unsafe baby toys and small electronic devices.
According to the Commission’s assessment, the risk evaluation Temu conducted in October 2024 was deemed inadequate. The evaluation reportedly relied on broad industry data rather than specifics related to the company’s own market operations. This reliance potentially resulted in insufficient mitigation measures to curb the distribution of illegal products. The Commission stated it will continue investigating further suspected violations.
If the Commission’s preliminary findings are ultimately confirmed, it intends to issue a non-compliance decision, signifying a violation of Article 34 of the Digital Services Act. Such a decision could lead to financial penalties amounting to up to six percent of the provider’s worldwide annual turnover.
“Consumers shop online with the expectation that products sold within our internal market are safe and comply with regulations” stated EU Commission Vice-President Henna Virkkunen. “From our initial assessment, Temu is not adequately evaluating the risks to its users as required by the Digital Services Act”. The safety of internet users remains a non-negotiable priority for the EU.