Users of Temu within the European Union may be exposed to a range of illegal products while using the shopping platform, according to a recent report by The Financial Times. Initial findings from an investigation conducted by the European Commission have revealed the presence of potentially counterfeit and unsafe items, such as baby toys and small electronics, on Temu.
Designated as a “Very Large Online Platform” under the EU’s Digital Services Act (DSA) last year, Temu is subject to strict regulations that require online platforms to actively prevent the sale of illegal goods and services. Following concerns over its effectiveness in enforcing these regulations, the EU initiated an investigation into Temu.
Temu now has the opportunity to respond to the EU’s investigation findings. Should the European Commission conclude that Temu has indeed breached regulations, it could face penalties amounting to 6 percent of its global annual revenue. The Commission has also indicated that it will explore other potential violations by Temu, which may include its design elements that encourage addictive usage, the clarity of its recommendation algorithms, and access to data for researchers.
