European Commission accuses Temu of selling illegal goods
29 July 12:50
The European Commission has announced that it has preliminarily found Temu in breach of the Digital Services Act (DSA) requirements for proper risk assessment of the distribution of illegal goods on the platform. The company faces a fine of up to 6% of its total annual revenue if the evidence is confirmed. This is stated on the website of the European Commission, "Komersant Ukrainian" reports
Thus, the European Commission has previously found Temu guilty of violating the Digital Services Act (DSA). The available evidence indicates a high risk for EU consumers to encounter illegal products on the platform, the EC noted.
In a statement, the Commission said that there is a high risk that EU consumers may encounter illegal or non-compliant products when shopping on Temu.
In particular, a “mystery shopping” conducted by the European Commission showed that it is easy to find prohibited children’s toys and electronics that do not meet safety requirements on the platform.
If the EC’s preliminary findings are confirmed, the European Commission will decide that Temu violates Article 34 of the Digital Services Act, which provides for a fine of up to 6% of annual global turnover and a requirement to eliminate the violation.
Read also: EU to strengthen control over Temu and other online platforms
The European Commission launched an investigation against Temu on October 31, 2024. The investigation is being carried out in cooperation with national digital services coordinators, customs authorities, market surveillance authorities and the Consumer Protection Network (CPC Network).
The Commission emphasizes that the growth of online trade in the EU is accompanied by an increase in the number of dangerous, counterfeit or uncertified goods that pose a threat to human health and safety, the environment and competition.
It is worth noting that Temu is a global Chinese platform that has managed to shake up the global e-commerce market in a short time. As a subsidiary of the Chinese giant PDD Holdings, it instantly became known for its ultra-cheap products, free shipping, and aggressive advertising.
The platform was launched in 2022 and from the very beginning set a course for the West. It offers goods directly from Chinese manufacturers, bypassing intermediaries, which allows it to maintain extremely low prices. Temu’s companies have direct ties to Chinese factories, and thus to Chinese state and industrial capital.
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