The EU has launched action against marketplace giant Temu over fears it is failing to stop the sale of illegal goods.
A formal investigation has been launched today (31 October) with the European Commission, with the governing body claiming it had numerous concerns Temu was breaching the new Digital Services Act (DSA).
One concern raised was that the etailer, which was hit with legal action over “manipulative practices” in May, did not have sufficiently robust systems to prevent “previously suspended rogue traders” reappearing on the platform, with some goods returning within days of being taken down.
The commission also cited the aggressive sales tactics used on the service, with an “addictive design” that involved “game-like rewards”, as well as weak systems to “mitigate the risks stemming from such addictive design”.
Executive vice-president in charge of the Europe fit for the digital age portfolio at the European Commission, Margrethe Vestager, said: “We want to ensure that Temu is complying with the DSA. Particularly in ensuring that products sold on their platform meet EU standards and do not harm consumers.
“Our enforcement will guarantee a level playing field and that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all.”
A Temu official said: “I want to stress that these are suspicions at this stage. These are not conclusions, not even preliminary conclusions.”
They also noted that the investigation was designed to determine whether there was a “systemic” problem on the platform.
Complaints were made against the ecommerce giant by a pan-European consumer group, which claimed it was breaking the DSA terms by not giving shoppers vital information regarding the sellers on its platforms.
The complaint was filed in May, with 17 other EU members also reporting complaints to relevant national authorities.
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