EU Consumers Lodge Complaint Against Chinese Retailer Temu Over Content Rules Breach

Chinese fast-fashion eCommerce giant Temu, owned by the PDD Group, faces a complaint from the European Union alleging a potential breach of online content regulations. The complaint, lodged on Thursday under the European Union’s Digital Services Act, highlights concerns over Temu’s failure to combat illegal content, harmful products and counterfeit goods on its platform, as reported by Reuters.

Under the Digital Services Act, online marketplaces and intermediaries are mandated to take action against illicit content and counterfeit products. However, the Pan-European consumer organization BEUC has raised alarms over Temu’s alleged non-compliance. BEUC revealed that it has filed a grievance with the European Commission, with support from 17 of its members across several EU nations, including France, Italy and the Netherlands, who have also lodged complaints with their respective national authorities.

Related: South Korea’s Antitrust Watchdog Partners with AliExpress and Temu to Address Safety Concerns

Temu, boasting a user base of 75 million monthly active users in the EU as of March, reportedly falls short in providing consumers with essential information about sellers on its platform and ensuring compliance with EU product safety standards, according to BEUC.

The complaint further accuses Temu of employing manipulative tactics, including the use of “dark patterns” to encourage consumers to make purchases beyond their intentions. Additionally, concerns were raised regarding the lack of transparency in how Temu recommends products to its consumers, as per Reuters’ report on the complaint.

The allegations against Temu underscore the growing scrutiny faced by eCommerce platforms, particularly those operating in the EU market, to uphold regulatory standards and safeguard consumer interests.

Source: Reuters