Temu has seen explosive growth since its launch in fall 2022. But this success has a downside. In May 2024, UFC-Que Choisir filed a complaint against the platform, accusing it of not respecting the DSA. The association points out the lack of transparency regarding sellers and the use of manipulation techniques to push consumption.
Even more serious, the Arkansas Attorney General recently called Temu “ dangerous malware “, he claims, the app would have access to all user data and could even resell it to third parties. Temu categorically denies these accusations, promising to defend himself vigorously.
Shein is no exception. The fast-fashion giant has also had its share of problems. In November 2023, a study by Proofpoint revealed that 58% of the top 50 French e-commerce sites lack DMARC protection against email attacks. Shein is one of them.
But the platform does not just endanger its users. It also annoys politicians and other e-commerce giants. A French MP is proposing a tax of up to 10 euros on each fast-fashion item purchased on Shein, aiming to reduce the environmental impact of this industry. At the same time, Amazon is preparing a response by creating a discount space to compete with these Chinese platforms.
Faced with these challenges, the European Union has decided to move up a gear. By placing Temu and Shein under the surveillance of the DSA, Brussels hopes to put an end to abuses and better protect European consumers. The two e-commerce giants will have to thoroughly review their practices if they want to continue operating on the European market.
The ball is now in their court. By July 12, Temu and Shein will have to prove that they can combine low prices with compliance with European rules. A tall order.
