EU slams Temu for selling ‘illegal’ goods
EU regulators launch probe into Temu for illegal products
The European Union has opened an investigation into the Chinese‑founded online shopping platform Temu, accusing the company of failing to adequately assess the risk of illicit products on its marketplace.
Key findings of the preliminary report
- High risk for consumers encountering non‑compliant items such as baby toys and small electronics.
- October 2024 risk assessment deemed inaccurate and overly reliant on generic industry data.
- Missing safeguards to protect users from potentially dangerous products.
Temu’s response
Temu stated it would continue to cooperate fully with the Commission and defend itself against the allegations.
Impact of the Digital Services Act (DSA)
- The DSA obliges the largest tech firms to enhance consumer protection and better police online content.
- Potential fines up to six percent of a company’s worldwide annual turnover.
- The investigation could last indefinitely, with no set time limit.
Other DSA probes
Similar investigations are underway for Chinese retailer AliExpress, social media platforms Facebook, Instagram, X, as well as TikTok.
EU’s broader strategy to curb cheap package imports
- Proposal for a two‑euro flat fee per parcel to address the flood of low‑cost shipments.
- Last year, 4.6 billion such packages entered the EU, 91 percent originating in China.
- Numbers are expected to rise in the coming years.
US lawmakers criticize the DSA as a “foreign censorship threat”
The Republican‑dominated Judiciary Committee of the US House of Representatives condemned the DSA, describing it as a threat to digital sovereignty. While the US administration under President Donald Trump has expressed skepticism, the European Union remains steadfast in its commitment to enforce the DSA’s stricter rules against Big Tech.
