EU Targets Temu Over Digital Services Act Violations

According to the Commission, Temu exposes users to illegal and unsafe products, fails to ensure adequate consumer protection, and lacks transparency in its algorithms.

In May 2024, Temu reached over 45 million monthly active users in the EU, placing it under the “Very Large Online Platform” (VLOP) category. This status brings stricter obligations and oversight. However, the Commission claims that Temu has not fulfilled its legal responsibilities under this classification.

Mystery shopping tests conducted by the EU revealed significant safety risks in several product categories sold on the platform, particularly children’s toys, small electronic devices, and cosmetics. Authorities stated that the likelihood of encountering unsafe or illegal products on Temu is “high.” Moreover, the company’s submitted risk assessment report was deemed superficial and based on general industry data rather than specific market analysis.

Temu’s addictive design has come under criticism

Temu’s mobile app interface has also come under scrutiny for its use of “gamified” features designed to encourage compulsive buying behavior. The Commission expressed concern over the potential negative impact of such designs, especially on younger users. Furthermore, Temu has failed to provide adequate transparency regarding how its recommendation algorithms work and has restricted access to data for independent researchers.

Temu has been granted the opportunity to respond to the allegations. However, if the violations are confirmed, the platform could face fines of up to 6% of its global annual revenue and be required to implement serious corrective measures. EU officials hope the process will set a precedent for greater accountability in the digital marketplace.