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Consumer protective covering group around the European Union have register coordinated complaints against Temu , accusing the Chinese - owned , extremist scurvy - price e - commerce program of a plenty of breach bear on to the axis ’s Digital Services Act ( DSA ) . Temu launched in the region only about a year ago butrecently reportedblasting past 75 million monthly users .
punishment for confirmed break of the EU ’s on-line governance and marketplace safety regimen can hit up to 6 % of the planetary one-year employee turnover of the chopine ’s parent . For some reference , Temu ’s parent Pinduoduoreportedrevenues of near $ 35 billion for 2023 , nearly double on the year prior ; Temu wasestimatedto account for about 23 % of that amount last year .
BEUC , the European consumer organisation that represent 45 regional consumer protection mathematical group across 31 EU countries , said Thursday it ’s filed a complaint against Temu with the European Commission — calling for the EU to desperately designate it as a “ very large on-line platform ” ( VLOP ) under the DSA . ( VLOP condition would imply Temu has to follow with additional algorithmic transparency and accountability rules , including mitigating systemic risk . Other tocopherol - commerce VLOPsincludeAlibaba , Amazon , Booking.com , Google Shopping and Zalando . )
At the same time , 17 of the BEUC ’s member administration around the bloc have file DSA complaints with their national consumer protection authorities — accusing Temu of breach theregulation ’s general formula , which have applied to Temu since mid - February .
The coordinated complaints allege the due east - commerce giant star is fail to run across a mint of DSA requirements , including trader traceability requirements , normal against manipulative design , and transparency around product recommender algorithms .
Commenting in a command , Monique Goyens , film director general at BEUC , accused the marketplace of being “ prevailing with manipulative techniques ” designed to push consumer to pass more , and claim deficient entropy about traders “ frequently leav[es ] consumers in the dark about who they are purchase products from . ”
“ This lack of traceability prevents consumer from taking an informed decision or to know if a product complies with EU safety rules , ” she added .
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The consumer protection chemical group are also raise worry about minor safety , pointing out the extreme cost discounting and gamification features bake into Temu ’s platform are likely to be attractive to kid .
“ Temu does not guarantee its users a safe , predictable , and trusty online environment as the police requires , ” they contend in the complaint . “ Among other things , we have hard concerns that consumers are fall prey to manipulative technique , that Temu fails to check the traceability of the traders operate on its platform , or that its overall functioning remains opaque , all of which break the Digital Services Act . ”
“ Ultimately , the high number of dangerous products sold on Temu by untraceable monger , through manipulative praxis and opaque recommender organization , are ingredients of a toxic cocktail potential to impair kid ’ privacy , safety , and security , ” the groups also monish .
The coordinated complaints follow some individual action by consumer group concerned about the safety and legality of products for sales event on Temu ’s market .
For example , last fall , Italian consumer group Altroconsumo go a psychometric test of cosmetic buy on the platform and found the Brobdingnagian majority failed to list ( or fully tilt ) ingredients . in the first place this year , the German consumer organisation vzbv leaven worry about misleading product review and price deduction displayed on the political platform .
As Temu is n’t presently a designated VLOP , its oversight with the DSA ’s general regulation falls to competent Digital Services Coordinators in EU penis land where its service operate . Ireland ’s media guard dog , the Coimisiún na Meán , is in the inning as Temuopened an office in Dublin a yr ago .
However , the ailment is likely to amp up pressure on the EU to designate Temu as a VLOP . A Commission representative told us it ’s aware of Temurecently reportingmore than 75 million monthly participating users ( MAUs ) in the EU — which is the threshold for triggering VLOP position — adding : “ We are in contact with the political program in view of a potential designation in the future . ”
Temu has been touch for comment . Update : The society sent a statement , describing itself as a “ newcomer ” to the part and tell it ’s been taking feedback from customers , regulator and consumer groups and claiming to have been adjusting how it operates to align with local expectations . The argument reveals that in the past week Temu put down into a “ cease - and - desist declaration ” with Germany ’s vzbv . It suggest many of this office ’s concerns overlap with the BEUC ’s complaint about its drill , adding that it ’s committed to addressing the issues raise .
“ Regarding the BEUC ailment , we take it very in earnest and will study it thoroughly , ” Temu also wrote . “ We hope to continue our dialogue with the relevant stakeholder to improve Temu ’s armed service for consumer . Where we identify areas for improvement , we are eager to exercise together to heighten our service and to rectify any defect . We hold the interest of consumers at heart and strive to offer a good and sure service that is valued by consumers and tot significant value . We are attached to transparence and full complaisance with all applicable laws and regularization . ”
Last monthShein , another Chinese e - commercialism giant that ’s beenlocked in a rough competition with Temu — including in relation to international mart expansion — was designate by the EU as a DSA VLOP after report passing the 45 million MAUs room access .
While , back in March , the EU opened its first DSA probe on a market place , target another China - owned due east - commerce political program — Alibaba ’s AliExpress — which had been named a VLOP in the first wave of designations inApril last class .
The Commission said then that it suspects AliExpress of gap DSA rules in areas linked to the management and mitigation of risks ; mental object moderation and its home complaint handling mechanism ; transparence of advert and recommender systems ; traceability of dealer ; and data access for researcher . The investigation — one of several the EU has opened into VLOPs sincelast yr ’s compliance deadlinefor these large political program kicked in — remains ongoing .
