EU Accuses Temu Of Failing To Curb Illegal Goods On Its Platform

European Union regulators on Monday accused the Chinese e-commerce platform Temu of failing to adequately prevent the sale of unlawful products to consumers within the bloc.

Officials warned that Temu’s lack of compliance with safety standards could potentially result in financial penalties amounting to as much as 6% of its yearly global revenue.

According to a formal announcement, “Evidence showed that there is a high risk for consumers in the EU to encounter illegal products on the platform.”

Investigators reported that a recent undercover purchasing operation uncovered widespread listings of questionable goods on Temu, including items like “baby toys and small electronics”, which failed to meet legal requirements.

Authorities criticized Temu for relying on generic industry data in its safety assessments, rather than focusing on risks unique to its own operations.

Should these preliminary conclusions be upheld, regulators may determine that the platform has violated the rules outlined in the Digital Services Act.

“Such a decision could entail fines of up to 6% of the total worldwide annual turnover of the provider and order the provider to take measures to address the breach,” the statement explained.

Temu will be given a chance to officially reply to the allegations in the weeks ahead, although no specific deadline has been issued.

In response, a Temu representative stated that the platform intends to “cooperate fully” with regulatory authorities during the process.

Officials emphasized that these concerns are just one part of a wider investigation. Temu is also being scrutinized over other possible rule violations, including the use of “addictive design features,” the lack of transparency in its product recommendation algorithms, and restrictions on “access to data for researchers.”