Digital Services Act

EU Commission tightens rules for Temu

Temu now has until the end of September to take extensive precautions to protect against counterfeit products, for example.

(Bild: AFP)

The EU Commission is tightening the rules for Temu. On Friday, the Brussels authority officially classified the Chinese online retailer as a very large online platform under the Digital Services Act (DSA). According to its own figures, Temu has around 75 million users in the EU every month.

The online platform is therefore well above the threshold of 45 million users above which the DSA applies. Temu must now take extensive precautions within four months, i.e. by the end of September, to protect against counterfeit products and infringements of intellectual property rights, for example.

In addition, annual risk assessment reports will become mandatory, which will have to take a close look at possible adverse effects on the health and safety of consumers in particular - with a focus on the physical and mental well-being of minors.

Numerous complaints pending
Temu attracts consumers with extreme bargains, but is repeatedly criticized for poor quality, shipments that are not received and, last but not least, the disastrous climate and environmental footprint of its products.

Consumer advocates in several European countries filed a complaint against the platform in mid-May. The online marketplace is "full of manipulative techniques aimed at getting consumers to spend more on the platform". Anyone wanting to delete their Temu account had to go through an "obstacle course" on the website. In addition, Temu often leaves consumers in the dark about who they are buying the products from.

Fines and even bans
With the Commission's decision on Friday, the DSA's requirements for digital giants apply to 24 large online services, including online retailers Amazon and Zalando, services such as Google Maps and platforms such as Facebook, TikTok and X. It was only at the end of April that Brussels classified the Chinese online retailer Shein as a very large online platform.

If companies violate the regulations, the penalties can reach up to six percent of their global annual turnover. In the event of repeated violations, they can also be banned in the EU, according to the DSA.