The European Commission has initiated an investigation into the Chinese online retailer Temu, focusing on whether the platform complies with EU laws regarding the sale of illegal products. This probe comes as Temu has rapidly established itself as one of the most popular e-commerce sites in Denmark.
The investigation aims to assess areas related to the sale of illegal products and the platform’s potentially addictive design features. The former Danish Commissioner, Margrethe Vestager, emphasized that Temu must adhere to the Digital Services Act, which regulates online services in the EU.
“Our enforcement will ensure fair competition and that all platforms, including Temu, fully respect the laws that keep our European market safe and fair,” Margrethe Vestager stated in a Thursday announcement.
Temu has drawn attention for its attractively low prices, appealing to many Danish consumers. However, several of its products have faced criticism for not meeting Danish regulatory standards.
According to the EU’s announcement, the investigation will closely examine the systems Temu has in place to prevent non-compliant products from reappearing on the platform. It will also investigate the measures for monitoring sellers who have previously sold illegal products.
The Commission noted that this would be a “comprehensive” investigation into the platform. In September, Temu reported having 92 million monthly users across the EU.
Moreover, the inquiry will assess the design of the service, which has been described as “addictive.” This includes evaluating “game-like” customer loyalty programs that may have negative implications for a person’s physical and mental well-being.
As the investigation unfolds, the EU aims to enhance consumer protections and ensure compliance among online retailers, thereby fostering a safer digital marketplace.
moreover Temu Investigation by EU
Source: B.T.
