European commission challenges Temu over illegal goods crackdown
The European Commission is demanding explanations from Temu. The Chinese online sales platform must provide the EU with evidence that it is tackling the sale of illegal products. This is the second such demand the Commission has sent to Chinese platforms within a few months.
Temu has until 21 October this year to respond. After that, Brussels may decide to take action against the platform, such as imposing financial penalties.
The EC considers Temu a "very large online platform." This classification means the service must comply with the provisions of the Digital Services Act (DSA). But what does this entail?
The platform is required, among other things, to empower and protect online users (including minors) and to properly assess and mitigate all systemic risks arising from its services. The regulation also includes the obligation to monitor whether counterfeit, dangerous, and intellectual property-infringing goods are being sold on the platform.
On Friday, EC spokesperson Thomas Regnier said that sales platforms must remember that consumer protection in the European Union is very stringent.
The EC is also demanding details from Temu on actions taken to prevent the distribution of illegal products, as well as details on user recommendations and the use of users' personal data.
Brussels scrutinises sales platforms
In June, a similar request for explanations was made to another Chinese platform, Shein.
At the end of September, six EU countries called for actions against Temu and Shein. Germany, Poland, France, the Netherlands, Austria, and Denmark sent a letter to the European Commission.
"They pose serious risks to consumers and disrupt fair competition within the European internal market - affecting not only retailers but also manufacturers of consumer goods. To ensure fair competition and protect consumers in the EU, it is essential to strictly enforce compliance with applicable EU regulations by manufacturers and e-commerce platforms, including those products coming from third countries," reads the letter sent to the EC.
