Topics
Latest
AI
Amazon
Image Credits:Jonathan Raa/NurPhoto / Getty Images
Apps
Biotech & Health
Climate
Cloud Computing
Department of Commerce
Crypto
Enterprise
EVs
Fintech
Fundraising
Gadgets
Gaming
Government & Policy
Hardware
layoff
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
Security
Social
Space
Startups
TikTok
Department of Transportation
Venture
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
television
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
The European Union has dialed up scrutiny of Chinese e - commerce marketplace Temu , require for more information about its submission with multiple provisions of the bloc ’s online administration model , theDigital Services Act ( DSA ) , include in relation to how it prevents the sale of illegal goods on its political program .
Back in May , gobs of consumer protective cover group filed coordinated complaints against Temu , putting insistency on the European Commission to probe a raft of concerns , include in area like monger traceability and manipulative design .
The DSA invest a legal necessity on tumid platforms to assess a variety of systemic risks their services might pose to EU users , in area such as small aegis and public health , and to take proactive steps to extenuate potential harms .
to boot , the regulation applies transparence requirements that demand that political platform provide detail of the logical system of algorithmic organization that are used to recommend substance to user .
penalization for noncompliance with the DSA can be stiff , reaching up to 6 % of global yearly turnover .
In apress releaseput out on Friday , the Commission said it ’s asked Temu for further info about risk mitigations around the sale of illegal products . It ’s also after particular ( “ detailed data and internal text file ” ) on how the platform place traders who are sell illegal stuff , and on mitigation measures it apply to ensure that job vender ca n’t just witness their way back and resume selling illegal ware .
to boot , the EU is quiz Temu on its approach to consumer protection jeopardy , public wellness danger , and risks to users ’ well - being . And the bloc want more information about Temu ’s recommender systems , as well as its approach to the security of user information .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
The e - commerce platform has been given until October 21 to provide the requested info .
Everyday , millions of Europeans buy all sorts of products on Temu . We are concerned about the potential presence of traders sell illegal products on the platform . Today we formally request@shoptemuto provide info on the mitigation measuring rod taken against such risk of infection
If the EU is infelicitous with Temu ’s responses , it could total back with even more information requests . Or it may move to spread a schematic investigation proceed if it suspects the eastward - mercantilism platform of disobedience .
An early Commission petition for information ( RFI ) backin June — which was sent to both Temu and another ultra - low - cost due east - Commerce Department platform , Shein — comprised a similarly expansive grab bag of asks . Then the EU sought info on their “ Notice and Action ” mechanisms ( i.e. , how they allow user report problems / illegal products ) ; port design ; the protective cover of minors ; the foil of recommender systems ; bargainer traceability ; and “ compliance by design . ”
The Commission ’s examination has yet to turn into a formal investigation of either east - DoC political platform . However , in Temu ’s type , it ’s only been dependent to centralized oversight by the Commissionsince May , when it was designated as a very large online platform ( VLOP ) .
The appellative open Temu until the end of September to align with the DSA ’s supernumerary layer of peril mitigation and algorithmic accountability rules for larger platforms . So the EU look to be move fast , potential in response to public pressure from consumer protection chemical group evoke care and demanding action .
In a argument on Friday , the European Consumer Organisation ( aka BEUC ) welcome the development .
“ It ’s well news that the Commission has urgently requested additional info from Temu to shape whether it complies with several obligations under the DSA . This is a follow - up to our complaints from May where we raised many problematic way out on Temu , including poor transparence about who sellers on the platform are and the lack of foil on how its recommender organisation employment , ” write the BEUC ’s digital policy officer , Fernando Hortal Foronda .
“ We think Temu is failing consumers and is likely to be breaking the law . Various member tests carried out over the past year about dangerous and illegal products point to a systemic trouble that Temu is currently failing to address properly . We expect urgent alteration from Temu now and hope this is the first of the end of consumers being queer to harmful drill on Temu . ”
strain for comment , Temu representative Abigail Rush of the New York - ground PR business firm 5WPR emailed a statement in which the company wrote : “ We have incur the request for information from the European Commission and are full cooperating . In line with our longstanding commitment to compliance , we have taken further substantial measures since being assign a VLOP on May 31 , 2024 , and persist in to refine our practices under the Digital Services Act . Consumer safety is a top antecedency , and we welcome feedback from all stakeholder as we figure out to supply access to quality , affordable products for our consumers . ”
This reputation was updated with comment from Temu .
