Now, concerns are mounting that the platform is not doing enough to prevent the sale of illegal products. According to its own statements, the European Commission has gathered evidence suggesting that Temu may be violating key provisions of the European Digital Services Act (DSA). A multi-billion-euro fine could be on the horizon.
Concerns: Platform Fails to Act Against Dangerous Products
Temu promotes itself with ultra-low prices and offers a massive selection of bargain productsβfrom clothing and electronics to household goods and toys. However, according to preliminary assessments by EU experts, the platform poses significant risks to consumers. The Commission found that users in the European Union face a particularly high risk of encountering non-compliant and, in some cases, dangerous products.
Baby toys and electronic items are under special scrutiny: many of the products sold on Temu reportedly do not meet European safety standards, according to the Brussels-based authority. Additionally, the investigation found that banned sellers were able to return to the platform under new identities and continue selling their goods.
Possible Violations of the Digital Services Act
Temu qualifies as a βVery Large Online Platformβ (VLOP) under European law, having reported over 45 million active monthly users within the EU. This status comes with heightened obligations under the Digital Services Act, including requirements to take effective action against illegal content and products on their marketplace.
βProtecting consumers in the digital space is non-negotiable for us,β stated EU Commissioner Henna Virkkunen. The platform has now been given the opportunity to respond to the allegations and propose improvements. If Temu fails to act adequately or cannot address the concerns, it could face formal violation proceedings and fines of up to six percent of its global annual revenue.
Additional Criticisms: Deception and Lack of Transparency
In parallel with the Commissionβs investigation, European consumer protection authorities are also conducting inquiries. The Consumer Protection Cooperation (CPC) networkβwhich coordinates enforcement among EU member statesβidentified multiple violations of EU consumer law as early as November 2024. These include dubious discount campaigns, fake reviews, hidden contact details, and misleading information about returns and cancellation rights.
Temu is also suspected of using addictive design features on its website and appβanother concern currently under investigation by the EU under the DSA framework.
Despite Criticism, Temu Continues to Grow in Europe
Despite mounting criticism, Temu remains extremely popular with European consumers. In Germany alone, it is now one of the countryβs largest online retailers, boasting millions of active users. Its combination of low prices, aggressive marketing, and massive product selection continues to drive growthβeven in the face of serious legal scrutiny.
How the European Commission ultimately rules remains to be seen. But one thing is clear: the Temu case is shaping up to be a major test for the enforcement of the EUβs new digital laws.
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