The European Union has launched a formal investigation into Chinese shopping platform Temu, citing concerns that the platform is selling illegal products and has been designed in a way that is addictive for consumers. According to an EU Commission official, there is a suspicion that Temu is not doing enough to prevent the dissemination of illegal products, such as pharmaceuticals, toys, and cosmetics. Despite frequent removal of these products, they reappear quickly, indicating that the current controls in place are not effective.
The investigation was prompted by a report released by the trade association Toy Industries of Europe, which found that none of the 19 toys purchased from Temu complied with EU legislation. The toys were found to pose significant risks for children, with sharp edges and chemicals exceeding legal limits. Commissioner Margrethe Vestager, who oversees competition and digital policy, stated that the EU’s enforcement will ensure a level playing field and that all platforms, including Temu, comply with laws to keep the European market safe and fair.
In addition to concerns about illegal products, the EU is also investigating Temu’s addictive design and recommendation systems, which feature gamified reward programs and infinite scrolling. This echoes a previous investigation into a TikTok rewards program, which was removed from the EU market following concerns about addictive design.
A Temu spokesperson stated that the company is investing in its compliance system and will cooperate with regulators to ensure a safe marketplace for consumers. Temu, which launched in the EU in April 2024, has quickly gained over 90 million users and is subject to the strictest rules under the Digital Services Act. This law allows regulators to fine companies up to 6 percent of their global turnover. Temu now has the opportunity to provide data to refute the EU’s suspicions or make changes to the platform to avoid fines. The investigation does not have a specific deadline for conclusion.
