The European Commission is investigating Temu for possible violations under the Digital Services Act.
- Concerns are rising that Temu allows the resale of products from previously banned traders.
- There are allegations regarding Temu’s use of manipulative and addictive sales tactics.
- A key issue is the lack of transparency about sellers on Temu’s platform.
- 17 EU members have filed complaints, pushing for a probe into Temu’s practices.
The European Commission has initiated an inquiry into the online marketplace Temu, examining claims that it has not effectively prevented the sale of illegal goods. This action follows concerns about Temu’s adherence to the Digital Services Act (DSA). The investigation was officially launched with the intention of addressing potential breaches of this new legislation.
A significant issue highlighted in the probe is the alleged inefficacy of Temu’s systems in stopping previously banned traders from returning to its platform. Reports indicate that some goods have resurfaced only days after being removed, raising questions about the robustness of Temu’s preventative measures.
Further allegations concern Temu’s aggressive marketing strategies, which are said to employ ‘addictive design’ elements involving game-like rewards. These tactics are under scrutiny as they may pose risks to consumers, potentially exploiting psychological vulnerabilities to boost sales.
The European Commission is also focusing on the apparent lack of transparency that Temu offers about its sellers. A pan-European consumer group has criticised Temu for not providing essential information about vendors, a vital aspect required under the DSA, thus potentially misleading consumers.
With a complaint first lodged in May, authorities from 17 EU nations have raised concerns, advocating for a detailed examination of Temu’s practices. Temu officials, in response, have labelled these as suspicions, insisting that findings are yet to be concluded and noting the investigation’s goal is to determine if there is a systemic issue.
The investigation will seek to ensure Temu aligns with EU standards, prioritising consumer safety and fair market practices.
