The European Commission has stated that Temu may be in breach of the EU’s landmark Digital Services Act (DSA).
The move marks a significant step in the EU's ongoing crackdown on companies that fail to ensure product compliance within the EU Single Market.
Temu, which has rapidly expanded across Europe with its low-cost retail model and aggressive social media marketing, is now under scrutiny for allegedly failing to assess and mitigate the risks of illegal products being sold through its platform.
The items, which were identified during a “mystery shopping” exercise, include unsafe baby toys and non-compliant small electronics,
“We shop online because we trust that products sold in our Single Market are safe and comply with our rules.”
said Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy.
“In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act. Consumers’ safety online is not negotiable in the EU – our laws, including the Digital Services Act, are the foundation for a better protection online and a safer and fairer digital Single Market for all Europeans.”
Risk assessment “too generic”
The Commission’s analysis found Temu’s October 2024 risk assessment to be insufficient, as it relied on broad industry information rather than a detailed evaluation of risks specific to its own operations.
The Digital Services Act, which came into full effect in early 2024, obliges very large online platforms (VLOPs) to rigorously assess and mitigate risks related to illegal content and product safety.
Temu falls under the DSA’s VLOP designation, meaning it must comply with enhanced transparency and safety obligations, including tracing traders, offering user-friendly complaint mechanisms, and preventing harmful design patterns such as addictive user interfaces.
Wider investigation underway
This development follows the opening of formal proceedings against Temu in October 2024.
The Commission is examining other potential violations, including whether Temu's algorithms rely on manipulative design elements, the transparency of its recommendation systems, and whether it is providing adequate data access to researchers, another requirement under the DSA.
The platform has faced increasing scrutiny globally for the traceability of sellers, product authenticity, and safety - issues that are now central to the EU’s tech regulation agenda under the DSA.
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