- Consumer protection groups in the EU have filed complaints against Temu for breaching the Digital Services Act (DSA).
- Allegations include manipulative design tactics and opacity around product recommendation algorithms.
- Pressure mounts for Temu to be designated as a “very large online platform” (VLOP) under the DSA.
Consumer protection groups in the EU accused Temu of breaching digital regulations, including manipulative tactics and opaque algorithms. As pressure grows for Temu to be designated as a “very large online platform” (VLOP), its response to the allegations will be closely scrutinized in the evolving e-commerce landscape.
European consumer organisation accuses Temu of breaching DSA
Consumer protection groups across the European Union have launched coordinated complaints against Temu, a Chinese-owned e-commerce platform, alleging multiple breaches of the EU’s Digital Services Act (DSA). Despite being relatively new to the EU market, Temu has swiftly amassed over 75 million monthly users.
The complaints, led by Bureau Européen des Unions de Consommateurs (BEUC), a European consumer organisation representing 45 regional groups, accuse Temu of violating DSA regulations, including transparency and trader traceability requirements. Monique Goyens, director general at BEUC, highlighted concerns about Temu’s manipulative techniques and lack of trader information, leaving consumers vulnerable to unsafe products.
“This lack of traceability prevents consumers from taking informed decisions or knowing if a product complies with EU safety rules,” Goyens stated, underscoring the urgency of designating Temu as a VLOP under the DSA.
Also read: TikTok, Temu, Shein: Will China’s Amazon killers succeed?
Pressure mounts for Temu amid allegations and regulatory scrutiny
The allegations against Temu include manipulative design tactics and opacity around product recommender algorithms, raising concerns about consumer safety, particularly for minors. Italian and German consumer groups have previously flagged issues such as misleading product reviews and incomplete ingredient lists on the platform.
The EU’s Digital Services Coordinators oversee Temu’s compliance with DSA rules, but pressure is mounting for the platform to be designated as a VLOP. Last month, Shein, a rival Chinese e-commerce giant, attained VLOP status after surpassing the 45 million monthly active users threshold.
As the EU continues investigations into VLOPs like Alibaba’s AliExpress, the spotlight intensifies on platforms like Temu to uphold digital governance standards and ensure consumer safety.
