EU Fee tightens guidelines for Chinese language on-line retailer Temu

Temu says it has round 75 million customers within the EU each month. The net platform is due to this fact nicely above the edge of 45 million customers at which the DSA takes impact.

Temu now has 4 months, i.e. by the top of September, to take in depth precautions to guard in opposition to, for instance, product counterfeiting and violations of mental property rights. Annual threat evaluation experiences may even be necessary, which should look at particularly potential antagonistic results on the well being and security of shoppers – with a give attention to the bodily and psychological well-being of minors.

“Filled with manipulative methods”

Temu lures prospects with excessive bargains, however is repeatedly criticized for poor high quality, unreceived shipments and, final however not least, the catastrophic local weather and environmental affect of its merchandise.

Shopper safety teams in a number of European international locations filed a grievance in opposition to the platform in mid-Could. The net market is “filled with manipulative methods geared toward getting shoppers to spend extra on the platform.” Anybody who desires to delete their Temu account has to undergo an “impediment course” on the web site. As well as, Temu usually leaves shoppers at the hours of darkness regarding who they’re shopping for the merchandise from.

With the Fee’s choice on Friday, the DSA’s necessities for digital giants apply to 24 massive on-line providers, together with the net retailers Amazon and Zalando, providers equivalent to Google Maps and platforms equivalent to Fb, TikTok and X. Solely on the finish of April did Brussels classify the Chinese language on-line retailer Shein as a really massive on-line platform.

If firms violate the laws, the fines can attain as much as six p.c of their annual world turnover. Within the occasion of repeated violations, they will also be banned within the EU, in response to the DSA.

A Temu spokesperson stated on Friday that the corporate had “taken observe” of the classification and that Temu was dedicated to “complying with the principles and laws of the DSA to make sure the safety, transparency and safety of our customers within the European Union.”

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