European Commission Flags Serious Compliance Failures
The European Commission has issued a stern warning to Chinese e-commerce giant Temu, stating the platform presents a "high risk" of exposing consumers to illegal products. Preliminary findings from an ongoing Digital Services Act (DSA) investigation reveal systemic failures in Temu's risk assessment protocols.
Dangerous Products on Marketplace
Investigators identified numerous non-compliant items including baby toys with hazardous components and electronics failing EU safety standards. Recent product tests revealed baby rattles containing dangerously sharp bells and bicycle helmets offering inadequate impact protection.
Digital Services Act Violations
The DSA requires platforms to implement robust measures against illegal content and products. The Commission found Temu's risk assessment "inaccurate" and based on generic industry data rather than platform-specific analysis. This marks Temu's second major EU violation after 2024 findings of deceptive marketing practices.
Potential Consequences and Next Steps
Temu now has until September 2025 to respond to the allegations. Failure to address concerns could result in fines up to 6% of global annual revenue - potentially exceeding €500 million based on current turnover.
Expanding Regulatory Scrutiny
EU Tech Commissioner Henna Virkkunen emphasized: "Consumer safety online is non-negotiable in the EU. Our laws establish foundational protections for a safer digital single market." The investigation continues examining Temu's addictive interface design and algorithm transparency.
This case follows similar actions against Chinese retailer Shein, indicating heightened EU scrutiny of ultra-low-cost e-commerce platforms. Customs authorities report being overwhelmed by shipments from these marketplaces, with up to 30% containing non-compliant goods.