The online shop Temu has been criticized since it was founded in 2022: The ultra-fast fashion practices of the US-based company, which is part of the Chinese online giant Pinduoduo, are causing unfair competition in the Western market and are harmful to health and the environment Ingredients in the products and production methods caused a stir.
Now the EU Commission opened formal proceedings against the online trading company at the end of October. The reason is an investigation into whether Temu had violated parts of the Digital Services Act (DSA). According to the Commission, this decision is based primarily on the risk assessment report submitted by Temu at the end of September 2024, as well as information submitted by third parties and responses to requests for information. The opening of the investigation procedure enables the EU Commission to take further enforcement measures.
The focus is mainly on three aspects of the platform: On the one hand, it is being investigated whether Temu limits the sale of non-compliant products in the European Union. Above all, dubious traders who were previously blocked are said to have regained access to the European market via the platform. As a result, non-compliant products also ended up in circulation.
The Commission also takes aim at the “addictive design of the service”. These include the game-like reward programs and risk mitigation systems. These are sometimes said to have negative consequences for a person’s physical and mental well-being. The way Temu recommends content and products to users is also affected.
BEVH is in favor of procedures
The Federal Association of E-Commerce and Mail Order Germany assesses this development positively. The EU Commission’s decision is good for consumers, as the DSA’s resources can now be used to combat rule violations. “It is the task of platforms to effectively ensure that illegal or harmful products are removed from the platform after they become known and cannot later be offered again by another provider,” says Gero Furchheim, President of the BEVH. “The EU must strictly monitor that this obligation is adhered to. When purchasing incentives on the platform, it must be checked whether they unduly influence consumers. This does not apply to every purchase incentive. It is the current legal situation and important that Temu makes its data transparent for research. Rules must apply to everyone.”
