Temu Accused of Breaching EU Online Content Rules

Popular Chinese online retail platform Temu has been accused of potentially violating the EU’s online content law in a complaint filed last week by the Pan-European consumer group Bureau Européen des Unions de Consommateurs (BEUC).

According to the legal complaint, the business has allegedly breached the bloc’s Digital Services Act (DSA), which sets out requirements and transparency obligations for e-commerce platforms.

In addition to BEUC, 17 of its member organizations, including France, Italy, Germany, and Belgium, have filed similar complaints with their respective DSA regulatory authorities.

The fast-growing online marketplace is facing scrutiny due to its lack of transparency regarding seller information and the employment of manipulative sales techniques, including the criteria used to suggest products to customers.

“Temu, which has over 75 million monthly users in the EU … is rife with manipulative techniques — dark patterns — to get consumers to spend more than they might originally want to, or to complicate the process of closing down their account,” Monique Goyens, director general at BEUC said in a statement.

The consumer group also raised concerns about the quality of products sold on the platform and whether they meet EU product safety rules.

In her statement, Goyens said that products “sold on marketplaces, whether online or offline, whether they are European, American or Chinese, must be safe and comply with European law if they sell to European consumers.”

The retailer, in a statement published by Reuters, said that it adjusts its services in accordance with the local rules and regulations.

“Regarding the BEUC complaint, we take it very seriously and will study it thoroughly. We hope to continue our dialogue with the relevant stakeholders to improve Temu’s service for consumers,” the company said in a statement.

Last month, Politico shared the possibility of Temu being designated as a “very large online platform” (VLOP) under the EU’s new digital act. According to the DSA, VLOPs are online platforms with over 45 million users in the EU and these businesses have to comply with additional transparency, risk assessment, and accountability rules.

Shein, another popular Chinese e-commerce giant, was designated as a VLOP under the new Digital Act in April 2024.