Key information
- The European Commission and national authorities have taken action against online marketplace Temu for potential violations of EU consumer law.
- The investigation focused on practices that could mislead or unduly influence purchasing decisions, as well as whether Temu meets its specific information obligations under EU law of consumption.
- Temu has been informed of these concerns and has been asked to bring its practices into compliance with EU regulations.
National consumer protection authorities and the European Commission have recently taken action against online marketplace Temu. A coordinated investigation revealed several practices on the platform that potentially violate European consumer law. The Consumer Protection Cooperation (CPC) network, made up of national authorities from across the EU, informed Temu of these concerns and asked it to bring its practices into line with EU regulations. The network, led by Belgium, Germany and Ireland, has requested additional information from Temu in order to fully assess the situation.
This investigation focuses on a range of consumer-facing practices on Temu, including those that could mislead or unduly influence purchasing decisions. The CPC Network also examined whether Temu fulfills its specific information obligations as an online marketplace under EU consumer law.
Actions against Temu
Complementing this action, the European Commission has launched formal proceedings against Temu under the Digital Services Act (DSA). Both actions aim to establish a safe and trustworthy online environment that safeguards the rights of European consumers. From December 13, the General Product Safety Regulation (GSP) states that an economic operator based in the EU is responsible for compliance with product safety requirements, including specific obligations for places online marketplace for consumers.
Concernations et obligations
The CPC network has identified several problematic practices on Temu that it says violate European consumer protection laws. These include: misleading advertising for discounts, high-pressure sales tactics, use of forced gamification to access the marketplace, providing incomplete and misleading information on returns and refunds, lack of stating minimum purchase requirements before checkout, publishing potentially false reviews and hiding contact details in the event of a request or complaint.
The CPC network also asked Temu to provide information on compliance with other obligations under European consumer law, such as the obligation to clearly inform consumers about the identity of the seller, to ensure ensure that product rankings, reviews and ratings are not misleading, accurately present price reductions and substantiate any environmental claims.
Next steps
Temu now has one month to respond to the CPC network’s findings and propose solutions to resolve these consumer law issues. Depending on Temu’s response, the CPC network could initiate a dialogue with the company. If Temu does not adequately address concerns, national authorities may implement compliance measures, including fines based on the company’s annual turnover in the Member States concerned. These actions are distinct from ongoing procedures carried out by national authorities and the European Commission under other regulations.
The CPC Network’s coordinated action against Temu is important as it highlights the EU’s commitment to protecting consumer rights in the online market. It emphasizes that companies operating within the EU must comply with strict consumer protection laws, regardless of their global scale.
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