Commission preliminarily finds Temu in breach of the Digital Services Act in relation to illegal products on its platform

SUMMARY :

• As part of its ongoing investigation against Temu under the Digital Services Act (DSA), the Commission has preliminarily found Temu in breach of the obligation to properly assess the risks of illegal products being disseminated on its marketplace.

MORE INFORMATION :

The Commission’s investigation, launched in October 2024 (see email thread below for more information), focused on several suspected breaches of the DSA by the online platform Temu. Based on evidence, including a mystery shopping exercise, the Commission found a high risk of EU consumers encountering non-compliant and potentially unsafe products, particularly baby toys and electronics, on the platform (sporting goods are not mentionned in the Commission’s communication).

According to the Commission's analysis, Temu's risk assessment of October 2024 was « inaccurate and relying on general industry information rather than on specific details about its own marketplace ». This may therefore have led to inadequate mitigation measures against the dissemination of illegal products.

The Commission will continue its investigation in relation to other suspected breaches opened in October 2024, including the effectiveness of its mitigation measures, the use of addictive design features, the transparency of its recommendation systems, and its access to data for researchers.

NEXT STEPS :

Temu now has the opportunity to respond to the preliminary findings and access the Commission’s investigation file. The European Board for Digital Services will also be consulted. If confirmed, the Commission may issue a formal non-compliance decision, impose fines of up to 6% of Temu's global annual turnover, and potentially initiate enhanced supervision measures.

FESI will continue monitoring the case and keep members updated.

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