- According to preliminary findings from the Commission, Temu failed to conduct appropriate risk assessments and implemented safeguards to prevent the sale of dangerous goods – especially baby toys and small electronic products
Temu, a fast-growing e-commerce giant owned by China’s PDD Holdings, is under severe scrutiny from the EU for allegedly selling illegal and dangerous products on its platform. The European Commission announced on Monday that the company may have violated the Digital Services Act (DSA), which aims to protect consumers online.
According to the preliminary findings of the Commission, Temu failed to conduct appropriate risk assessments and implemented safeguards for the sale of dangerous goods, especially baby toys and small electronic products. A mysterious shopping survey reportedly found widespread access to non-compliant and unsafe items.
“The risk of EU consumers encountering illegal products on the platform is high,” the committee said. The committee criticized Temu’s October 2024 risk report for being vague and lacking platform-specific analysis.
Launched in Europe in 2023, Temu quickly became a major player in the online retail industry, with more than 93 million users per month in 27 EU member states. But the EU investigation may have serious consequences. If Temu is found to violate the DSA, it could face a fine of up to 6% of global annual turnover and be forced to overhaul its practices.
The investigation did not stop product safety. EU officials are also detecting the potential manipulation design features of Temu and its proposed algorithm lacks transparency.
While Temu will have the opportunity to respond to the findings, the timeline for the final ruling is unclear.
