The European Union has launched a proper investigation into Chinese language procuring platform Temu, citing issues that the platform is promoting unlawful merchandise and has been designed in a method that’s addictive for shoppers.
“There’s a actual suspicion that not sufficient is completed—not in an efficient method—to actually stop the dissemination of unlawful merchandise,” an EU Fee official informed reporters on Thursday morning, declining to be named. Doubtlessly unlawful merchandise included prescribed drugs, toys, and cosmetics, they stated.
Though Temu continuously removes unlawful merchandise, these merchandise reappear once more in a short time, one other official stated. “So we consider a number of the controls in place will not be working correctly.”
Earlier this yr, the commerce affiliation Toy Industries of Europe launched a report warning that not one of the 19 toys it purchased on Temu.com complied with EU laws. After sending the toys to a laboratory for testing, they claimed that a lot of them posed important dangers for kids. The group stated {that a} rattle for infants included sharp edges, and chemical substances in a Temu slime equipment have been 11 objects increased than the authorized restrict for toys.
“Our enforcement will assure a stage enjoying subject and that each platform, together with Temu, totally respects the legal guidelines that maintain our European market protected and truthful for all,” Commissioner Margrethe Vestager, who oversees competitors and digital coverage, stated in an announcement.
Officers additionally stated they have been involved about addictive design and suggestion methods on Temu as a result of they function gamified reward applications and infinite scrolling.
Considerations round addictive design on Temu echo one other latest EU investigation right into a TikTok rewards program launched in France and Spain in April. TikTok Lite, a primary model of TikTok correct, provided to pay customers a number of cents a day for watching movies. Following the announcement of EU issues, TikTok’s dad or mum firm ByteDance eliminated the function from the area.
A Temu spokesperson informed WIRED the corporate is investing in its compliance system. “We are going to cooperate totally with regulators to help our shared purpose of a protected, trusted market for shoppers,” they stated.
Temu launched within the European market solely in April 2024, and its rise has been meteoric. By September, Temu had greater than 90 million EU customers, which means it’s topic to the strictest guidelines underneath the Digital Companies Act. The legislation, which got here into impact final yr, provides regulators the power to superb corporations as much as 6 % of their world turnover. In March, AliExpress grew to become the primary on-line market to face an investigation underneath the Digital Companies Act.
Temu can now present information to show the EU’s suspicions are unfounded or it will possibly make adjustments to the platform to keep away from fines. The investigation doesn’t need to conclude by any particular deadline.
“This choice by the Fee is a promising step, however solely the primary,” stated Fernando Hortal Foronda, digital coverage officer on the European Shopper Group (BEUC), in an announcement on Thursday. “Now, it’s necessary the Fee retains up the strain on Temu and pushes the corporate to adjust to the legislation as quickly as doable.”