The Chinese digital clothing and jewelry platform Temu is doing too little to prevent the sale of illegal products. This is according to an initial investigation by the European Commission on Monday. This includes baby toys that may be dangerous.
Consumers who visit the webshop are “very likely” to encounter products that do not comply with European legislation, the European Commission writes. For example, they are not safe enough for consumers or for the environment. Examples of such products are baby toys or small electronics, the Commission writes.
Temu has thereby violated the Digital Services Act (DSA). This law has been binding on all internet platforms in the European Union since the beginning of this year. The DSA should better protect residents online against illegal content and disinformation and the way online advertisements are offered.
According to the DSA, Temu has an obligation to prevent the sale of illegal products, but the platform is not doing enough about this. “In our preliminary opinion, Temu is far from meeting the standards set by the Digital Services Act,” says European Commissioner Henna Virkkunen.
The webshop would also use algorithms that are too addictive. With game-like reward systems, website visitors are constantly tempted to buy new products. This is also in violation of EU rules. Another problem is that Temu does not provide insight into how it collects data and what the platform does with it. That part of the investigation is still ongoing.
On the basis of the DSA, Brussels can impose fines of 6 percent of the company’s total worldwide annual turnover. It is not yet that far: Temu will first be given the opportunity to respond to the results of the investigation.
Temu is not the only company being investigated on the basis of the DSA. AliExpress is also under investigation for illegal products. Furthermore, four major porn websites, among others, must take measures to ensure that minors’ access to their platform is limited as much as possible.