With the recent changes in tax rates on products purchased from abroad and the shopping limit reduced to 30 Euros, the popularity of Temu in our country has been steadily declining. The renowned China-based online retail platform is about to face a challenging process as it has been hit with a major lawsuit for allegedly selling counterfeit products. Here are the details…
Temu faces EU scrutiny!
The China-based e-commerce giant Temu is under investigation by the European Union (EU) for allegedly violating new regulations. The Commission announced that Temu, now subject to the Digital Services Act (DSA), will be monitored under the strictest compliance measures. This comprehensive regulation aims to clean up online platforms and ensure internet users’ safety…
Having entered the Western market in just two years and reached 92 million users, Temu is known for offering affordable products across a wide range of categories, from clothing to home goods. Affiliated with Pinduoduo Inc., the company sources most of its products from China. However, EU officials have raised concerns about the reliability of these products, stating their intent to prevent the spread of counterfeit goods.
In a statement, the company said, “We take our obligations under the DSA seriously. We are continuously investing to protect consumer interests and enhance our compliance systems on our platform.” Temu also emphasized its readiness to fully cooperate with regulators in pursuit of a ‘safe and reliable marketplace.’
The EU Commission is scrutinizing not only counterfeit products but also Temu’s gamified reward programs, which may involve addictive mechanisms. While evaluating the measures taken by the company to mitigate these risks, it also examines other DSA compliance areas like transparency in data sharing and recommendation systems.
While the European Union has requested Temu to provide transparent options for user profile-based recommendations, there has yet to be a response from the Temu side regarding this issue.
What are your thoughts on these developments? Don’t hesitate to share your views in the comments.
