The European Commission opens an investigation against the e-commerce site Temu

The Temu site in the sights of the European authorities. The European Commission opened an investigation on Thursday against the online commerce site of Chinese origin, suspected of acting insufficiently against the sale of illegal, potentially dangerous products. “We want to ensure that the products sold (on the platform) comply with EU standards and do not endanger consumers,” explained Competition Commissioner Margrethe Vestager.

No legal deadline is set for concluding the investigation. If Temu is found guilty of offences, it could be fined up to 6% of its annual turnover, under the new EU Digital Services Regulation (DSA).

A low price strategy

Temu, which is experiencing meteoric growth in Europe thanks to a strategy of low prices, is the international version of the Chinese e-commerce juggernaut Pinduoduo, born in 2015. It offers a plethora of products: clothing, toys, decoration, tools, high-tech… The group is committed to working closely with the services of the European Commission.

“Temu takes its obligations under the Digital Services Regulation very seriously and continually invests to protect the interests of consumers. We will fully cooperate with regulators,” a spokesperson said. The Brussels investigation comes after several warnings and written questions addressed to the platform.

 

It will focus in particular on “the systems put in place to limit the sale of non-compliant products in the European Union” and in particular the means implemented “to prevent the reappearance of undesirable traders, previously suspended” for this reason, explained the European Commission.

A complaint filed last May

The Brussels executive, which now plays the role of digital policeman in the European Union, will also examine “the risks linked to the addictive design of the service” of online sales. This includes rewards programs in a gamified form “that may have negative consequences on the physical and mental well-being of users”.

 

European consumer associations filed a complaint against Temu in May, accusing it in particular of using misleading interfaces to encourage users to spend more on the platform. The company affirmed on October 11 that it had already “taken significant measures” since the spring, while emphasizing that it continued to “refine” its practices “within the framework of the digital services regulation”.

By Editor