The EU has officially launched a legal battle against fast fashion e-commerce site Temu, accusing it of continuing to sell illicit products to its customers.
A formal investigation is now underway into the Chinese shopping website, with the European Commission having “numerous concerns,” reports The Guardian.
The complaints are primarily about breaching the new Digital Services Act (DSA).
What is the new Digital Services Act (DSA)?
The DSA regulates online platforms, like Temu in this case, as well as social networks, content-sharing platforms, app stores, and online travel and accommodation platforms.
The DSA‘s purpose is to curb illegal and harmful activities online. In the digital age, there are concerns about harmful activities that spread “disinformation.”
It protects fundamental rights and creates an open and fair online environment.
Companies that fail to comply with the act face fines of 1% of their worldwide annual turnover.
Temu has only been selling in the EU for over a year, but it’s already gaining massive popularity as a shopping destination.
What is Temu doing wrong?
Not effective control systems are a massive problem. It’s alleged that Temu has no sufficiently robust systems to prevent previously banned traders from selling on the platform again.
Countercheck says more than 63% of all counterfeit goods seized worldwide come from China.
This latest investigation centers around authorities’ concerns that Temu allegedly sells counterfeit products, pharmaceuticals, cosmetics, and toys.
Complaints and threats against Shein and Temu
Earlier this year, Temu was accused of selling padded crib bumpers, which are illegal in the US. The product didn’t comply with safety standards and posed a high risk of suffocation.
Its rival, Shein, also faced serious allegations. They were accused of selling children’s hoodies with drawstrings, which regulators deemed unsafe for the age group.
NOW READ: Why Indonesia banned Temu (and why other countries won’t follow)
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Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
