The European Commission has initiated an investigation into Temu, a significant online marketplace.
- Concerns have been raised over Temu’s ability to prevent the sale of illegal goods.
- The Digital Services Act (DSA) may have been breached by Temu’s practices.
- Suspended rogue traders allegedly reappeared quickly on Temu’s platform.
- Temu’s design includes aggressive sales tactics that might be manipulative.
The European Commission has launched an investigation into Temu, an online retail giant, due to apprehensions that it may be selling illegal products. This move follows fears that Temu is not taking adequate measures to comply with the Digital Services Act (DSA).
One pressing issue is that Temu appears to allow previously suspended vendors, labelled as rogue traders, to reappear swiftly on its platform. Reports suggest that certain goods have re-emerged merely days after being removed, sparking serious regulatory concerns.
The platform’s aggressive sales tactics and its addictive design have been highlighted as problematic. These features include game-like rewards, which might entice consumers to engage more than intended. Such designs are under scrutiny for potentially exploiting consumer behaviour.
Margrethe Vestager, Executive Vice-President of the European Commission, noted the necessity for Temu to comply with DSA regulations to ensure that all products meet EU safety standards. She emphasized the importance of maintaining a safe and fair marketplace across Europe.
A representative from Temu responded, stressing that all current accusations remain in the realm of suspicion. They pointed out that the investigation aims to determine if there is a systemic problem within the platform.
A pan-European consumer group has lodged complaints stating that Temu’s practices violate the DSA by not providing essential seller information to consumers. These complaints, initiated in May, have been supported by 17 other EU member countries.
The European Commission’s action against Temu underscores the significance of adhering to safety and fairness standards in the digital marketplace.
