The European Commission has identified a “high risk” for European Union Temu users encountering illegal products, according to preliminary investigation findings. The findings, reported by The Financial Times, revealed counterfeit, unsafe, and non-compliant baby toys, small electronics, and other items on the platform.
The EU designated Temu a “Very Large Online Platform” last year under the Digital Services Act (DSA), which enforces accountability for illegal goods, services, and content on online platforms. An investigation into Temu commenced due to concerns regarding its efforts to prevent illegal product sales.
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Temu now has an opportunity to address the EU’s findings. Should the EU determine Temu violated its regulations, potential fines could reach 6 percent of its global annual revenue. The Commission stated it would continue to investigate other suspected rule violations on Temu, including alleged addictive design features, its recommendation systems’ transparency, and researcher data access.
