Consumer protection groups across the European Union have banded together to file complaints against Temu, a Chinese-owned ultra low-cost e-commerce platform, for multiple breaches related to the bloc’s Digital Services Act (DSA). Despite only launching in the region a year ago, Temu has quickly amassed over 75 million monthly users.
The penalties for confirmed breaches of the EU’s online governance and marketplace safety regulations can be severe, with fines potentially reaching up to 6% of the platform’s global annual turnover. BEUC, the European consumer organization representing 45 regional consumer protection groups, has filed a complaint against Temu with the European Commission, urging the designation of the platform as a “very large online platform” (VLOP) under the DSA.
The complaints allege that Temu is failing to meet various DSA requirements, including trader traceability, rules against manipulative design, and transparency around product recommender algorithms. Monique Goyens, director general at BEUC, criticized Temu for using manipulative techniques to push consumers to spend more and for lacking transparency about traders on its platform.
Concerns have also been raised about the safety of products on Temu, particularly in relation to minors, as the platform’s extreme price discounting and gamification features could be appealing to children. Individual actions by consumer groups in Italy and Germany have previously highlighted issues with product ingredients listings and misleading product reviews on Temu.
The pressure is mounting on the EU to designate Temu as a VLOP, especially as the platform has reported over 45 million monthly active users in the EU. With Shein, another Chinese e-commerce giant, recently being designated as a VLOP, the spotlight is now on Temu to ensure compliance with the DSA regulations.