The European Commission fined Temu €200 million for failing to comply with Digital Service Act requirements. The Commission found consumers are very likely to encounter illegal items on the platform. It concluded Temu did not identify and assess systemic risks related to illegal products or address the harmful impact on customers. The Commission’s investigation included testing outcomes from mystery shoppers, including electronic device chargers that failed basic safety tests and baby toys that posed safety risks. The toys exceeded legal limits for certain chemicals or created suffocation hazards. Temu must submit an action plan by August 26. Noncompliance could trigger additional periodic penalty payments. Shein faces a related DSA investigation after French regulators reported listings for child-like sex dolls.
"Temu has been fined €200 million (about $232 million) by the European Commission after it found that consumers are "very likely to encounter illegal items" on the popular Chinese e-commerce platform. According to the commission, Temu breached Digital Service Act (DSA) rules by failing to identify and assess the systemic risks of illegal products being offered on its platform and the resulting harmful impact on its customers."
"As part of that investigation, the Commission said that a "very high percentage" of electronic device chargers purchased by mystery shoppers failed basic safety tests, and found that a high percentage of tested baby toys posed safety risks, reporting that they exceeded the legal limits for certain chemicals or posed suffocation hazards."
"Temu now has until August 26th to submit an action plan to the Commission to remedy the DSA breach. If Temu fails to comply, it may face additional periodic penalty payments. Shein, a similar Chinese retailer that rivals Temu, is facing a similar DSA investigation over illegal products after French regulators found listings for "child-like sex dolls" on the platform last year."
Read at The Verge
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