Risk of illegal sales, EU seeks clarification from Temu under DSA

Brussels – Clothes, jewelry, footwear, sports and household items: real bargains. However, the European Commission fears they are also illegal. That is why it has demanded that Temu, the online super-market run by China’s PDD Holdings, clarify what measures are in place and intended to be taken so that the web portal does not become a hub for reviewing outlawed items and products. The EU executive makes it known that it has sent a request for information under the Digital Services Act (DSA) for “detailed information and internal documents” on measures to prevent and avert the sale of illegal goods.

The request for information also contains an invitation to specify the measures taken to reduce and eliminate risks related to consumer protection, public health, and user welfare, as well as everything related to privacy and personal data protection, particularly those of EU citizens. 

Brussels fears the online portal may be operating without due care, and they are giving Temu ten days to allay fears. Temu must provide the requested information by October 21, which the Commission services will analyze. Temu will not be able to shy away from responding since, under the DSA, the Commission can impose sanctions for incorrect, incomplete, or misleading information. If there is no response, the Community Executive can impose periodic penalty payments.

Temu is in the spotlight because it has been identified by the Commission as a ‘very large platform,’ that is, with at least 45 million monthly users. This is one of the requirements under the European regulation on digital services, that automatically triggers controls and obligations for web operators.

It is not the first time Temu has come under the crosshairs of Brussels. As early as June 28 of this year, the online store received a request for information on measures taken to respond to EU regulations on the ‘notification and action mechanism’ for notification of illegal products, protection of minors, transparency of recommendation systems, and traceability of merchants, and to compliance by design.