Temu, the worldwide model of Chinese language e-commerce big Pinduoduo, was added on 31 Could 2024 to the EU’s listing of main platforms topic to stricter controls underneath the Digital Providers Act (DSA).
THE In the pastwhich has deep penetration of the European market resulting from its ultra-low worth technique, is now the twenty fourth platform, together with Amazon, Shein and Zalando, to be topic to the strictest potential European shopper safety guidelines, in response to a European official.
The Chinese language platform was not too long ago accused by shopper associations of implementing consumer manipulation strategies and violating a number of DSA guidelines. In accordance with the complaints, Temu makes use of strategies reminiscent of darkish patterns to induce clients to spend more cash, in response to the European Bureau of Shopper Unions (BEUC) which filed a criticism with European Fee.
Temu has 75 million month-to-month customers within the European Union, surpassing the 45 million consumer restrict that requires platforms to fall underneath the EU’s enhanced regulatory framework.
Since February, the DSA has imposed new obligations on all digital platforms, together with Temu, to higher defend customers in opposition to unlawful content material.
European laws prohibits misleading interfaces and imposes elevated transparency guidelines for the algorithms used to focus on customers. It mandates verification of the id of sellers on on-line platforms and the expulsion of repeat offenders.
In accordance with the newsit, Temu, just like the 23 different main platforms topic to the improved European controls, is now obliged to research the dangers related to its companies and put in place means to cope with them. This evaluation shall be reviewed yearly by the European Fee, which now takes on the function of digital guardian within the European Union.
“Measures have to be taken to guard customers in opposition to shopping for harmful or unlawful merchandise and to forestall the sale of merchandise dangerous to kids,” the European official defined.
The Chinese language platform has till the tip of September to adjust to its new obligations.
Violators are topic to a advantageous of as much as 6% of the annual international turnover as much as a ban on actions in Europe in case of great and repeated infringements.
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