Brussels opens investigation against Temu, suspected of not acting against the sale of illegal products

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

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). 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”said a spokesperson.

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Risks linked to the “addictive design” of these sites

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 previously suspended unwanted traders” for this reason, explained the European Commission.

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” online sales, including rewards programs in a fun form “likely to have negative consequences on the physical and mental well-being of users”. The Commission will also look into product recommendation systems to users, and the obligation for Temu to disclose the main parameters used by these systems.

The European executive also suspects Temu of not respecting the obligation to provide researchers with access to the platform's data. 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 said on October 11 that it had already “took significant steps” since the spring, while emphasizing that it continued “to refine” its practices “under the Digital Services Regulation”. At the end of September, six European Union countries, including France and Germany, asked the Commission to tighten the screws against Temu. “Every day, hundreds of thousands of packages arrive at our home, especially from China, with goods that do not respect the rules of the European market”denounced German State Secretary for the Economy Sven Giegold during a meeting with his EU counterparts in Brussels.