Retail giant Temu violates EU law according to preliminary findings

Brussels (dpa) – Chinese online retail giant Temu violates European Union laws by not doing enough to tackle the sale of illegal products on the shopping platform, according to the preliminary findings of a probe carried out by the European Commission.

“Evidence showed that there is a high risk for consumers in the EU to encounter illegal products on the platform,” a press release published on Monday said.

“Specifically, the analysis of a mystery shopping exercise conducted by the Commission found that consumers shopping on Temu are very likely to find non-compliant products among the offer, such as baby toys and small electronics,” the statement read.

The Chinese company can now respond to the allegations and address the issues raised in the review. Should Temu fail to dispel the concerns, the Commission can formally declare a violation of the EU’s Digital Services Act (DSA) and impose a fine of up to 6 percent of Temu’s global annual turnover.

The EU’s executive arm however has stressed that no final decision has been made.

“Consumers’ safety online is not negotiable in the EU – our laws, including the Digital Services Act, are the foundation for a better protection online,” said European Commission Vice-President Henna Virkkunen.

Temu initially did not comment publicly on the allegations. A spokesman for the company however told dpa that Temu will continue to fully cooperate with the Commission.

The investigation into unsafe products sold on Temu was opened in October.

Temu is very popular with customers across the bloc. The provider is already one of the largest online retailers in Germany. Several million people in the EU shop on the platform. (28 July)