The European Commission has stated that the Chinese platform Temu is violating the Digital Services Act by selling illegal products in the European Union. According to preliminary findings, the company faces a fine of up to 6% of its annual revenue. The G.Business website reports with reference to the European Commission website. We have already reported that

The Commission conducted a secret shopper analysis that revealed consumers on Temu may encounter products that do not meet safety requirements, such as dangerous children's toys and uncertified electronics. If confirmed, the platform will face substantial fines.

Additionally, the European Commission had already initiated legal proceedings in 2024 due to the platform’s insufficient safety measures and aggressive marketing techniques, including the use of “gamified rewards” to attract customers.

The statement from Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security, and Democracy, highlights the importance of maintaining safety and security standards in the European Union's Digital Services Act (DSA). It indicates that online platforms, like Temu, are expected to assess and mitigate potential risks to consumer safety based on strict EU regulations. Here's a breakdown of what this means:

  1. Consumer Protection: Online shoppers in the EU trust that products offered within the Single Market meet safety standards. If a platform, such as Temu, fails to evaluate and manage risks appropriately, it risks violating EU laws, which are designed to protect users.
  2. Obligations for Online Platforms: The Digital Services Act (DSA) holds online businesses accountable for the safety of their platforms. It requires platforms to remove dangerous or non-compliant products and ensure that risks are continuously assessed. If they fail to comply, they can face heavy fines.
  3. Safer Digital Environment: This is part of the EU’s broader effort to create a safer, fairer digital market. The DSA aims to build trust between consumers and online platforms by making sure that user safety is always prioritized.
  4. Impact on Businesses: Platforms that operate in the EU, like Temu, need to improve their risk assessment processes and comply with the DSA to avoid penalties. This creates a level playing field for businesses that adhere to the required standards, ensuring fair competition.
  5. Fines for Non-Compliance: If Temu and similar platforms are found to be non-compliant, they could face substantial penalties, including fines up to 6% of their annual revenue. This creates a strong incentive for businesses to meet the required safety standards.

Overall, the Digital Services Act ensures that consumer safety is at the forefront of online shopping and digital services, creating a safer online environment for all users in the EU.

Stay connected for news that works — timely, factual, and free from opinion — and insights that matter now: Trump Signs Landmark Crypto Law – Launching a U.S. Crypto Revolution and Raising Ethical Questions