If the investigation confirms the suspicions, Temu could be fined up to 6% of its turnover. Last year, Temu saw its turnover climb to $35 billion. Based on these figures, this would result in a fine of more than 2 billion.
Temu, the new Chinese shopping site that slashes prices
Clothing, toys, decoration, tools, high-tech… you can find everything on the Chinese e-tailer’s website, but the quality of the products is often criticized, even if “Temu takes its obligations relating to the Digital Services Regulation very seriously and continually invests to protect the interests of consumers. We will fully cooperate with regulators.”said a spokesperson.
Consumer defense organizations welcomed the opening of this investigation, but want us to maintain pressure on the platform. “This is a promising step, but only a first step. It is now important that the Commission keeps the pressure on Temu and pushes the company to comply with the law as soon as possible.”said Fernando Hortal Foronda of the European Consumers’ Unions Bureau (Beuc).
The investigation 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 deployed “to prevent reappearance” on the platform of illegal or counterfeit products, such as medicines, chemicals or potentially dangerous toys, explained the European Commission.
The Commission 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.
