Shop Temu? What to know about an EU probe into the Chinese retailer
Global News
A European Union watchdog is looking into whether Chinese online retailer Temu has done enough to crack down on products sold illegally on the platform.
Chinese online retailer Temu is facing a European Union investigation over suspicions it’s failing to prevent the sale of illegal products, the 27-nation bloc’s executive arm said on Thursday.
The European Commission opened its investigation five months after adding Temu to the list of “very large online platforms” needing the strictest level of scrutiny under the bloc’s Digital Services Act. It’s a wide-ranging rulebook designed to clean up online platforms and keep internet users safe, with the threat of hefty fines.
Temu started entering Western markets only in the past two years and has grown in popularity by offering cheap goods — from clothing to home products — that are shipped from sellers in China. The company, owned by Pinduoduo Inc., a popular e-commerce site in China, now has 92 million users in the EU.
Temu said it “takes its obligations under the DSA seriously, continuously investing to strengthen our compliance system and safeguard consumer interests on our platform.”
“We will cooperate fully with regulators to support our shared goal of a safe, trusted marketplace for consumers,” the company said in a statement.
European Commission Executive Vice-President Margrethe Vestager said in a press release that Brussels wants to make sure products sold on Temu’s platform “meet EU standards and do not harm consumers.”
EU enforcement will “guarantee a level playing field and that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all,” she said.
The commission’s investigation will look into whether Temu’s systems are doing enough to crack down on “rogue traders” selling “non-compliant goods” amid concerns that they are able to swiftly reappear after being suspended. The commission didn’t single out specific illegal products that were being sold on the platform.
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