Overview

• On July 28, the European Commission issued a preliminary finding that Temu violates its Digital Services Act obligations by allowing illegal and unsafe products on its EU marketplace
• Undercover mystery-shopping and expert tests revealed that baby toys and small electronics sold through Temu frequently fail to meet EU safety and legal requirements
• The Commission warned that if Temu does not address the preliminary findings, it could face penalties of up to 6 percent of its worldwide annual turnover
• Authorities have also opened a parallel inquiry into Temu’s user interface for potentially addictive design features that may manipulate consumer behavior
• Temu was designated a very large online platform in May 2024 after surpassing 45 million active EU users, triggering strict DSA risk-assessment and mitigation duties