EU finds Temu in breach of Digital Services Act

Brussels – Temu violated the Digital Services Regulation (Digital Services Act, DSA)  by failing to take action to prevent the sale of counterfeit products on its platform, according to the European Commission’s finding following preliminary checks conducted against the internet operator. According to the EU executive, the evidence from the investigation launched in October “showed that there is a high risk for consumers in the EU to encounter illegal products on the platform.“ 

In particular, the EU antitrust services continue, the Commission’s analysis of a a mystery shopping exercise conducted by the Commission found that consumers shopping on Temu “are very likely” to find non-compliant products among the offer, such as baby toys and small electronics.

Now, Temu has the task of proving the contrary and taking appropriate action because if the Commission’s preliminary findings are confirmed, Brussels will take a non-compliance decision with EU rules. Such a decision could result in penalties of up to 6 percent of the supplier’s total annual worldwide turnover and require the supplier to take steps to remedy the breach.