Temu, a gigantic digital bazaar of objects, often made of plastic and often made in China, is in the crosshairs of the European Commission. On Thursday, October 31, the Commission launched an investigation into the commercial practices of the Chinese e-commerce platform, which is popular worldwide. The EU’s executive arm is basing its action on “strong suspicions” of violations of the European regulation on digital services, better known as the DSA (Digital Services Act).
In April 2023, Temu caught the attention of the authorities as soon as it arrived in Europe, making its mark with low prices and a considerable marketing expenditure. A year and a half after its launch, the platform boasts 92 million monthly users, far exceeding the 45 million monthly user threshold required to be considered a “very large platform” under European law. The designation is far from insignificant. It implies direct supervision by the European Commission, which now has the power to monitor, in conjunction with member states’ authorities, the application of European law.
Today, there is no guarantee that the products flooding the market from China via the Temu platform or other equivalent platforms comply with European standards. This is one of the main grievances of the Commission, which was alerted very early on by consumer associations and national authorities.
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Consumer associations have identified numerous non-compliant, and sometimes dangerous, products available on the platform. They have, for example, spotted items whose instructions are only available in Chinese, cosmetics without a list of ingredients, or baby toys with small parts that are too easily detachable. Pharmaceutical products, jewelry and all kinds of manufactured goods are of concern. The Commission is investigating whether these errors are “systemic” in terms of the DSA.
‘Addictive’ characteristics
Sébastien Pant, spokesman for the European Consumers’ Organisation (BEUC), stressed the responsibility of platforms. “Very large platforms like Temu are obliged to set up a system to prevent the sale of dangerous products on the European market. Without this, Temu is unable to guarantee consumers that its products comply with European standards.” Before the official launch of the investigation, the Commission asked the Chinese company to produce a “risk assessment,” but “this remained too general,” said a Commission source.
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Publish date : 2024-10-31 17:49:00
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