The low-cost provider Temu doesn’t have the best reputation. However, the company is now in trouble with the EU Commission. Because it has initiated formal proceedings against the Chinese platform.
Low-cost provider Temu launched in September 2022. Interest in the Chinese platform has been unbroken since the beginning.
In September 2024 alone, the app went global more than 47 million times downloaded. Temu even beats Amazon.
But although the app is popular, the platform has been criticized since the beginning. Now the EU Commission has one formal procedure initiated against Temu.
EU Commission initiates proceedings against Temu
The EU Commission suspects that Temu is violating the EU Digital Services Act. For this reason, the authority has initiated a formal procedure to investigate possible violations.
The EU Commission wants to use the procedure to ensure that the products sold on the platform “meet EU standards and do not harm consumers,” explained Vice Commission President Margrethe Vestager.
Our enforcement will ensure a level playing field and ensure that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all.
There are allegations that Temu is not taking enough action against the sale of illegal products. This is mainly about counterfeit items. But the potentially addictive design of the platform is also part of the investigation.
Not the first request from the Commission
The EU Commission has previously asked Temu to be more transparent twice. The last time this happened was on October 11th.
The EU Commission is demanding that online retailers be more transparent about how the sale of illegal products should be prevented. Temu should also explain how the platform handles consumer protection by October 21st.
Temu faces a heavy fine from the EU Commission
The EU Commission relies on the Digital Services Act (DSA), i.e. the EU law for digital services. This enshrines a special duty of care for large online platforms.
If the EU Commission Temu can now prove violations of this law, the Chinese online retailer could face a hefty fine. In this case, the EU Commission could impose a fine of up to six percent of Temu’s global annual turnover.
Temu itself has now declared its willingness to work with the EU Commission. The company wants to be a “safe, trustworthy marketplace for consumers,” as the company says.
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The article Illegal products? EU Commission initiates proceedings against Temu by Maria Gramsch appeared first on BASIC thinking. Follow us too Facebook, Twitter and Instagram.
As a Tech Industry expert, it is concerning to hear about the EU Commission initiating proceedings against Temu for illegal products. It is essential for tech companies to comply with regulations and ensure that their products are safe and legal for consumers. Illegal products not only pose risks to consumers but can also damage the reputation of the tech industry as a whole.
It is crucial for companies like Temu to take responsibility for their products and work closely with regulatory authorities to address any issues that may arise. Transparency and accountability are key in maintaining trust with consumers and ensuring that the tech industry continues to thrive in a safe and ethical manner.
I hope that Temu takes this opportunity to rectify any issues with their products and commits to upholding the highest standards of legality and safety in the future. Compliance with regulations is not only a legal requirement but also a moral obligation to protect consumers and uphold the integrity of the tech industry.
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