Temu users in the European Union are at “high risk” of coming across illegal products while shopping on the platform, as reported earlier by The Financial Times. Preliminary findings from the European Commission’s investigation into the platform uncovered baby toys, small electronics, and other items on Temu considered counterfeit, unsafe, or “non-compliant.”
Last year, the EU designated Temu a “Very Large Online Platform” under its Digital Services Act (DSA), which holds online platforms accountable for hosting illegal goods, services, and content. The EU later opened an investigation into Temu over concerns that it’s not doing enough to keep illegal products off its ultra-cheap marketplace.
Temu now has a chance to respond to the EU’s findings. If the EU ultimately finds that Temu did violate its rules, the platform could face fees of up to 6 percent of its global annual revenue. The Commission says it will continue to investigate other suspected rule violations on Temu, including its “addictive design features, the transparency of its recommendation systems, and its access to data for researchers.”
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