According to a previous report by the Financial Times, Temu users in the EU encounter a "high risk" of illegal products when shopping on the platform. European Commission preliminary investigation into the platformresultIt shows that baby toys, small electronics and other goods on the Temu platform are considered counterfeit, unsafe or "non-compliant".
Last year, the European Union designated Temu as a "very large online platform" under the Digital Services Act (DSA), which requires online platforms to be responsible for hosting illegal goods, services and content. The EU subsequently launched an investigation into Temu over concerns it was not doing enough to prevent illegal products from entering its ultra-low-price market.
Temu now has the opportunity to respond to the EU's findings. If the EU ultimately determines that Temu did breach its rules, the platform could face fines of up to 6% of its annual global revenue.
The European Commission said it would continue to investigate other alleged violations by Temu, including its "addictive design features, transparency of the recommendation system and data access by researchers."