European Union investigates Temu over illegal products

(CLO) The executive body of the European Union (EU) wants to ensure that goods from the online shopping platform Temu "meet EU standards and do not harm consumers".

The European Commission has opened an investigation into Chinese online shopping platform Temu over suspicions the site is not doing enough to prevent the sale of illegal products.

“We want to ensure that Temu complies with the Digital Services Act (DSA). In particular, we want to ensure that the products sold on its platform meet EU standards and do not harm consumers,” European Union Competition Commissioner Margrethe Vestager said in a statement on Thursday (October 31).

Photo: Gi

Temu said it would cooperate with the EU. The platform is also facing increased scrutiny over counterfeiting and “addictive design.” In May, the European Commission classified Temu as a “very large online platform” under the DSA, a law that requires the world’s largest tech companies to do more to protect online consumers in Europe.

Concerned about counterfeit goods being sold on Temu, Ms Vestager wanted to know what systems Temu had in place to crack down on “rogue traders” selling “non-compliant goods” and how the platform would limit their “reappearance”.

The EU Competition Commission is also concerned about Temu’s aggressive sales tactics and “potentially addictive design,” including “game-like” rewards programs. Temu could face hefty fines, up to 6% of its global turnover, if found to have breached the law.

Temu has rapidly expanded its operations in Europe with an aggressive marketing strategy, attracting millions of users with its “shop like a billionaire” slogan and low prices across a wide range of products. According to the EU Competition Commission, Temu had 92 million monthly active users in the EU as of September.

Responding to the EU's moves, a Temu spokesperson said: "We will cooperate fully with regulators to support our shared goal of creating a safe, trustworthy marketplace for consumers."

The company is also considering joining a group of e-commerce platforms and brands working together to stop the sale of counterfeit products online in Europe.

Quang Anh (according to DW, AFP, Reuters)

Source: https://www.congluan.vn/lien-minh-chau-au-dieu-tra-temu-ve-cac-san-pham-bat-hop-phap-post319399.html