The European Commission has accused Temu, the Chinese e-commerce platform, of violating key consumer protection rules under the Digital Services Act (DSA), citing the platform’s failure to prevent the sale of illegal or non-compliant products across the European Union.
In a preliminary assessment released on Monday, the Commission said Temu had not adequately assessed the risks associated with products sold on its platform, particularly items such as baby toys and small electronics that reportedly do not meet EU safety standards. The alleged shortcomings have put millions of consumers at risk, according to the Commission.
Temu, known for its low prices and free shipping, now faces the possibility of a fine amounting to 6% of its global annual revenue if the allegations are confirmed.
At the center of the Commission’s concerns is a risk assessment submitted by Temu in October 2024. EU regulators say the document relied on general industry data instead of platform-specific insights, resulting in a flawed analysis and insufficient mitigation efforts against the spread of illegal products.
“This may therefore have led to inadequate mitigation measures against the dissemination of illegal products,” the Commission stated.
Under the Digital Services Act, which took effect in 2023, online marketplaces are required to take proactive measures to ensure the safety and legality of items offered on their platforms. These include effective checks for counterfeit goods and potentially dangerous merchandise.
While the current findings are not yet final, the Commission has warned that if confirmed, it will issue a formal non-compliance decision. This could lead to both financial penalties and an obligation for Temu to implement corrective measures. In addition, the platform could be placed under an enhanced supervision period.
Temu has been granted the opportunity to respond in writing and to review the Commission’s evidence. The European Board for Digital Services will also be consulted before any final decision is taken.
