Temu under investigation by European Commission for failing to control counterfeit and unsafe products
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The European Commission is reportedly planning to launch an investigation into e-commerce platform Temu over concerns it is 'failing to control the online sale of illegal products.'
Temu to Face EU Probe Over Handling of Illegal Product Sales - Bloomberg
https://www.bloomberg.com/news/articles/2024-10-30/temu-to-face-eu-probe-over-handling-of-illegal-product-sales
European Commission to launch investigation into Temu, Bloomberg reports | Reuters
https://www.reuters.com/business/retail-consumer/european-commission-launch-investigation-into-temu-bloomberg-reports-2024-10-30/
Under the EU's (PDF file) Digital Services Act , companies with more than 45 million users are designated 'Very Large Online Platforms (VLOPs)' and are required to take measures to prevent the spread of illegal content and counterfeit goods on their platforms. Violations of this law could result in fines of up to 6% of annual global revenue.
European Commission announces large-scale platforms subject to 'Digital Services Act', including YouTube, Google, Twitter, Instagram, Facebook, TikTok, Wikipedia, etc. - GIGAZINE
On October 11, 2024, the European Commission requested Temu, which was designated a VLOP in May 2024, to share data on how it is addressing counterfeit and unsafe products in its marketplace. However, according to sources, the information Temu has provided to the European Commission so far has not been satisfactory to the European Commission and has not allayed the EU's concerns about Temu.
The EU has previously requested information from Temu under the Digital Services Act.
China-based discount shopping sites Shein and Temu are required to provide information under the EU's Digital Services Act - GIGAZINE
As a result, the European Commission is set to launch an investigation into Temu to determine whether it has violated rules against fraudulent online activity, due to concerns that the company is failing to control the online sale of illegal products.
The European Commission has declined to comment on the report, and a Temu spokesperson did not respond to a request for comment.
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