Consumer safety teams across the European Union have filed coordinated complaints in opposition to Temu, accusing the Chinese-owned extremely low-cost e-commerce platform of a raft of breaches associated to the bloc’s Digital Services Act (DSA). Temu solely launched within the area a couple of yr in the past however not too long ago reported blasting previous 75 million month-to-month customers.
Penalties for confirmed breaches of the EU’s on-line governance and market security regime can attain as much as 6% of the worldwide annual turnover of the platform’s mum or dad. For some reference, Temu’s mum or dad Pinduoduo reported revenues of practically $35 billion for 2023, practically double on the yr prior; Temu was estimated to account for about 23% of that quantity final yr.
BEUC, the European client group that represents 45 regional client safety teams throughout 31 EU international locations, mentioned Thursday it’s filed a criticism in opposition to Temu with the European Commission — calling for the EU to urgently designate it as a “very large online platform” (VLOP) below the DSA. (VLOP-status would imply Temu has to adjust to further algorithmic transparency and accountability guidelines, together with mitigating systemic threat. Other e-commerce VLOPs embrace Alibaba, Amazon, Booking.com, Google Shopping and Zalando.)
At the identical time, 17 of BEUC’s member organizations across the bloc have filed DSA complaints with their nationwide client safety authorities — accusing Temu of breaching the regulation’s normal guidelines which have utilized to Temu since mid-February.
The coordinated complaints allege the e-commerce big is failing to satisfy a raft of DSA necessities, together with dealer traceability necessities; guidelines in opposition to manipulative design; and transparency round product recommender algorithms.
Commenting in a press release, Monique Goyens, director normal at BEUC, accused {the marketplace} of being “rife with manipulative techniques” designed to push shoppers to spend extra, and claimed inadequate details about merchants “frequently leav[es] consumers in the dark about who they are purchasing products from.”
“This lack of traceability prevents consumers from taking an informed decision or to know if a product complies with EU safety rules,” she added.
The client safety teams are additionally elevating issues about minor security, stating the acute worth discounting and gamification options baked into Temu’s platform are prone to be engaging to youngsters.
“Temu does not guarantee its users a safe, predictable, and trustworthy online environment as the law requires,” they argue within the criticism. “Among other things, we have strong concerns that consumers are falling prey to manipulative techniques, that Temu fails to ensure the traceability of the traders operating on its platform, or that its overall functioning remains opaque, all of which breach the Digital Services Act.”
“Ultimately, the high number of dangerous products sold on Temu by untraceable traders, through manipulative practices and opaque recommender systems, are ingredients of a toxic cocktail likely to impair minors’ privacy, safety, and security,” the teams additionally warn.
The coordinated complaints comply with some particular person actions by client teams involved in regards to the security and legality of merchandise on the market on Temu’s market.
For instance, final fall, Italian client group Altroconsumo ran a take a look at of cosmetics bought on the platform and located the overwhelming majority didn’t checklist (or absolutely checklist) components. Earlier this yr, the German client organisation vzbv raised issues about deceptive product evaluations and worth reductions displayed on the platform.
As Temu isn’t at the moment a chosen VLOP, its oversight with the DSA’s normal guidelines falls to competent Digital Services Coordinators in EU Member States the place its service operates. Ireland’s media watchdog, the Coimisiún na Meán, is within the body as Temu opened an workplace…
