The European Union has launched a formal investigation into Chinese shopping platform Temu, citing concerns that the platform is selling illegal products and has been designed in a way that is addictive to consumers.
“There is a real suspicion that not enough is being done, not effectively, to actually prevent the spread of illegal products,” an EU Commission official, who asked not to be named, told reporters Thursday morning. identified. Potentially illegal products include pharmaceuticals, toys and cosmetics, they said.
Although Temu frequently removes illegal products, these products reappear very quickly, another official said. “That’s why we believe some of the controls in place are not working properly.”
Earlier this year, the trade association Toy Industries of Europe published a report warning that none of the 19 toys he bought on Temu.com complied with EU legislation. After sending the toys to a lab for testing, they claimed many of them posed significant risks to children. The group said a baby rattle included sharp edges and that the chemicals in a Temu slime kit were 11 elements higher than the legal limit for toys.
“Our application will ensure a level playing field and that each platform, including Temu, fully respects the laws that keep our European market safe and fair for everyone,” Commissioner Margrethe Vestager, who oversees competition and digital policy, said in a statement.
Officials also said they were concerned about the addictive design and recommendation systems in Temu because they feature gamified reward programs and infinite scrolling.
Concerns about addictive design in Temu echo another recent EU investigation into a TikTok rewards program launched in France and Spain in April. TikTok Lite, a basic version of TikTok itself, offered to pay users several cents a day to watch videos. Following the announcement of the EU concerns, TikTok’s parent company Bytedance removed the region feature.
A Temu spokesperson told WIRED that the company is investing in its compliance system. “We will fully cooperate with regulators to support our shared goal of a safe and reliable market for consumers,” they said.
Temu was not launched on the European market until April 2024 and its rise has been meteoric. As of September, Temu had more than 90 million EU users, meaning it is subject to the strictest rules of the Digital Services Act. The law, which came into force last year, gives regulators the ability to fine companies up to six percent of their global turnover. In March, AliExpress became the first online marketplace to face a investigation under the Digital Services Law.
Temu can now provide data to prove that the EU’s suspicions are unfounded or can make changes to the platform to avoid fines. The investigation does not have to conclude within any specific time frame.
“This decision by the Commission is a promising step, but only the first,” Fernando Hortal Foronda, head of digital policy at the European Consumer Organization (BEUC), said on Thursday. “It is now important for the Commission to keep the pressure on Temu and pressure the company to comply with the law as soon as possible.”