Online trade
Illegal products: Online platform Temu threatens EU penalty
Many consumers can be lured by the low prices of Asian shopping portals. But there are risks, the EU Commission is now located. And reproaches a large platform.
According to an analysis of experts from the EU Commission, the Chinese online marketplace Temu violates European digital law. It has been proven that there was a high risk of encountering illegal products for consumers in the EU, the Brussels authority said to a preliminary assessment. In particular, the investigation showed that people buying on Temu are very likely to find baby toys or electronics products that do not correspond to EU rules.
According to the EU Commission, Temu would actually be obliged to better tackle the risks of distribution illegal products on its marketplace in accordance with the Law on Digital Services (DSA). Commission Vice President Henna Virkkuns announced: “The security of consumers on the Internet is not negotiable in the EU.”
The Chinese company can now react to the allegations. If Temu does not adapt to his behavior or if it cannot clear the allegations, the Commission can formally determine a violation. This can result in a fine of up to six percent of Temu’s overall total sales.
The authority led by Ursula von der Leyen emphasized on Monday that it has not yet decided whether Temu really violates EU law. However, she emphasized that she also investigated other alleged violations of Temu about the digital law – including the use of addictive design features of the marketplace.
Investigation has been running since October
Temu has been investigated for a long time. In October, the Commission announced that it checked whether the platform was doing enough against the sale of illegal products. At that time it was said, among other things, that dubious dealers would appear again on the platform after they were closed.
Temu is very popular in Europe
Temu is very popular with customers in Germany and Europe. The provider is already one of the largest online retailers in Germany. Several million people in the EU use the portal. Under EU digital law, it is considered a very large online platform (VLOP) because the company had reported that they have more than 45 million active monthly users in the EU.
Further allegations in the room
Regardless of the DSA examination, European consumer protection authorities also take action against Temu. As the network for cooperation in consumer protection (CPC network) made known in November, several practices on the platform are violating EU law.
False discounts, fake reviews as well as a lack of and misleading information about the legal claims of consumers were given as problematic practices at the time. Also contact information hidden Temu, so that customers could not contact the platform without difficulty. The impression is also given that products are only limited or available for a short time.
Trade relationships with China are tense
The Brussels procedure against Temu falls in a time of growing economic tensions with China. As it became clear at the EU China summit last week, progress – despite the willingness to talk – is left out at the central issue of trade. Commission President of the Leyen made it clear that the economic relationships of the two major powers have to become more balanced.
dpa
Source: Stern
