The EU accuses TEMU of breaking the legislation concerning the sale of illegal products on its platform

The European Commission concluded, in a preliminary basis on Monday that the Chinese online trade site TEMU had failed in the obligation to correctly assess the risks of dissemination of illicit products on its platform.

EU’s conclusions could lead to a fine of up to 6% of TEMU’s total annual turnover, the European Commission said.

“The evidence has shown that there is a high risk for EU consumers to meet illegal products on the platform,” the commission said in a statement.
“More specifically, the analysis of a mystery purchase exercise led by the Commission revealed that consumers who buy on TEMU are very likely to find non -compliant products in the offer, such as baby toys and small electronic devices.”

The European Commission considered that the risk assessment carried out by TEMU was “inaccurate” and based on general information in the sector rather than on specificities of its own market.

If the preliminary opinions were to be finally confirmed, the Commission would adopt a decision noting the non-compliance with article 34 of the legislation on digital services (DSA).
TEMU has the possibility of responding to the preliminary conclusions of the Commission in the coming weeks, said a spokesperson for the Commission, without providing a specific delay.

A spokesperson for Temu said that the company would continue to “cooperate fully” with the Commission.

The conclusions relate only to one aspect of the wider investigation carried out by the EU against TEMU, the Commission said.
TEMU is also suspected of having violated EU rules relating to the use of addictive design characteristics, the transparency of its recommendation systems and its access to data for researchers.

(Written by Bart Meijer, French version Elena Smirnova, edited by Kate Entringer)