The European Union has launched a formal investigation into Chinese shopping platform Temu, citing concerns that the platform is selling illegal products and has been designed in a way that is addictive for consumers.
“There is a real suspicion that not enough is done—not in an effective way—to really prevent the dissemination of illegal products,” an EU Commission official told reporters on Thursday morning, declining to be named. Potentially illegal products included pharmaceuticals, toys and cosmetics, they said.
Although Temu frequently removes illegal products, these products reappear again very quickly, another official said. “So we believe some of the controls in place are not working properly.”
Earlier this year, trade association Toy Industries of Europe released a report warning that none of the 19 toys it bought on Temu.com complied with EU legislation. After sending the toys to a laboratory for testing, they claimed that many of them posed significant risks for children. The group said that a rattle for babies included sharp edges, and chemicals in a Temu slime kit were 11 items higher than the legal limit for toys.
“Our enforcement will guarantee a level playing field and that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all,” Commissioner Margrethe Vestager, who oversees competition and digital policy, said in a statement.
Officials also said they were concerned about addictive design and recommendation systems on Temu because they feature gamified reward programs and infinite scrolling.
Concerns around addictive design on Temu echo another recent EU investigation into a TikTok rewards program launched in France and Spain in April. TikTok Lite, a basic version of TikTok proper, offered to pay users a several cents a day for watching videos. Following the announcement of EU concerns, TikTok’s parent company Bytedance removed the feature from the region.
A Temu spokesperson told WIRED the company is investing in its compliance system. “We will cooperate fully with regulators to support our shared goal of a safe, trusted marketplace for consumers,” they said.
Temu only launched in the European market in April 2024, and its rise has been meteoric. By September, Temu had more than 90 million EU users, meaning it is subject to the strictest rules under the Digital Services Act. The law, which came into effect last year, gives regulators the ability to fine companies up to six percent of their global turnover. In March, AliExpress became the first online marketplace to face an investigation under the Digital Services Act.
Temu can now provide data to prove the EU’s suspicions are unfounded or it can make changes to the platform to avoid fines. The investigation does not have to conclude by any specific deadline.
“This decision by the Commission is a promising step, but only the first,” said Fernando Hortal Foronda, digital policy officer at the European Consumer Organisation (BEUC) in a statement on Thursday. “Now, it’s important the Commission keeps up the pressure on Temu and pushes the company to comply with the law as soon as possible.”
Source : Wired
