The European Union is investigating Chinese online retailer Temu for potential violations of rules designed to prevent the sale of illegal products. This investigation, launched under the Digital Services Act (DSA), follows complaints from the European Consumer Organisation (BEUC) and its members regarding the platform’s practices, including its game-like reward systems and product recommendation algorithms, which may contribute to addictive user behavior. The EU regulators are concerned that Temu has not done enough to prevent illegal product sales and that rogue traders are reappearing under different identities. Temu, which has 92 million users in the EU and is part of PDD Holdings, stated that it takes its compliance responsibilities seriously and is working to enhance its consumer protection measures. The company is also considering joining a voluntary EU initiative to combat counterfeit products. The investigation will assess whether Temu is meeting DSA requirements, particularly regarding providing access to public data for researchers. If found in violation, Temu could face fines of up to 6% of its global turnover.
Read more here: TEMU EU Potential Violations
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