The European Union has launched a proper investigation into Chinese shopping platform Temu, citing issues that the platform is promoting unlawful merchandise and has been designed in a manner that’s addictive for customers.
“There’s a actual suspicion that not sufficient is finished—not in an efficient manner—to actually forestall the dissemination of unlawful merchandise,” an EU Fee official instructed reporters on Thursday morning, declining to be named. Doubtlessly unlawful merchandise included prescribed drugs, toys and cosmetics, they stated.
Though Temu often removes unlawful merchandise, these merchandise reappear once more in a short time, one other official stated. “So we consider a number of the controls in place are usually not working correctly.”
Earlier this 12 months, commerce affiliation Toy Industries of Europe launched a report warning that not one of the 19 toys it purchased on Temu.com complied with EU laws. After sending the toys to a laboratory for testing, they claimed that a lot of them posed vital dangers for youngsters. The group stated {that a} rattle for infants included sharp edges, and chemical substances in a Temu slime equipment had been 11 gadgets increased than the authorized restrict for toys.
“Our enforcement will assure a degree taking part in area and that each platform, together with Temu, totally respects the legal guidelines that preserve our European market secure and truthful for all,” Commissioner Margrethe Vestager, who oversees competitors and digital coverage, stated in a press release.
Officers additionally stated they had been involved about addictive design and advice programs on Temu as a result of they function gamified reward packages and infinite scrolling.
Issues round addictive design on Temu echo one other latest EU investigation right into a TikTok rewards program launched in France and Spain in April. TikTok Lite, a primary model of TikTok correct, provided to pay customers a a number of cents a day for watching movies. Following the announcement of EU issues, TikTok’s father or mother firm Bytedance eliminated the function from the area.
A Temu spokesperson instructed WIRED the corporate is investing in its compliance system. “We’ll cooperate totally with regulators to help our shared purpose of a secure, trusted market for customers,” they stated.
Temu solely launched within the European market in April 2024, and its rise has been meteoric. By September, Temu had greater than 90 million EU customers, which means it’s topic to the strictest guidelines underneath the Digital Services Act. The regulation, which got here into impact final 12 months, provides regulators the power to high-quality firms as much as six p.c of their international turnover. In March, AliExpress grew to become the primary on-line market to face an investigation underneath the Digital Providers Act.
Temu can now present knowledge to show the EU’s suspicions are unfounded or it could actually make modifications to the platform to keep away from fines. The investigation doesn’t need to conclude by any particular deadline.
“This resolution by the Fee is a promising step, however solely the primary,” stated Fernando Hortal Foronda, digital coverage officer on the European Shopper Organisation (BEUC) in a press release on Thursday. “Now, it’s vital the Fee retains up the strain on Temu and pushes the corporate to adjust to the regulation as quickly as potential.”
