The European Union has launched an investigation into the online marketplace Temu due to concerns regarding the company’s possible violations of the Digital Services Act (DSA). The European Commission has voiced several issues, including the platform’s inadequate systems for preventing previously banned sellers from quickly reappearing and selling illegal goods again shortly after being removed. Additionally, there are worries about the aggressive and addictive sales tactics employed by Temu, which feature game-like rewards that can foster compulsive buying behavior among consumers.
Margrethe Vestager, Executive Vice-President of the European Commission for a Europe fit for the digital age, stressed the necessity of ensuring that Temu adhered to the DSA. She stated that the enforcement efforts are intended to guarantee that all products sold on the platform meet EU standards and do not threaten consumer safety, thereby maintaining a safe and fair market in Europe. The investigation was initiated following a complaint filed in May by a pan-European consumer group, which alleged that Temu failed to provide crucial information about sellers to consumers, thus breaching DSA regulations. This complaint received support from 17 other EU member states, who also reported similar issues to their respective national authorities.
Potential Systemic Issues
The European Union has initiated an investigation into Temu, an online marketplace, over concerns about potential violations of the Digital Services Act (DSA). The European Commission has highlighted several problems, including Temu’s insufficient systems to prevent previously banned sellers from swiftly returning and selling illegal goods. There are also concerns about Temu’s aggressive sales tactics, which use game-like rewards that can lead to compulsive buying behavior among consumers.
Margrethe Vestager, Executive Vice-President of the European Commission for a Europe fit for the digital age, emphasized the importance of ensuring Temu complies with the DSA. She stated that the enforcement efforts aim to make sure all products on the platform meet EU standards and do not endanger consumer safety, thus maintaining a fair and safe market in Europe. The investigation began following a complaint in May from a pan-European consumer group alleging that Temu did not provide essential information about sellers, violating DSA regulations. This complaint gained support from 17 other EU member states, who reported similar issues to their respective national authorities.
