EU says Temu in breach of rules to prevent sale of illegal products

The European Commission on Saturday, Brussels (Reuters), said that the Chinese online marketplace Temu violated EU rules without doing enough to prevent the sale of illegal products through the platform.

The Commission said that the EU’s findings may ultimately lead to a fine of TEMU up to 6% of the annual global turnover.

“Evidence showed that there is a high risk for consumers in the EU to encounter illegal products on the platform,” Temu said in a statement about Temu. He said.

“In particular, the analysis of a mysterious shopping exercise found that consumers shopping at TEMU have high probability of finding non -compatible products such as baby toys and small electronics.”

The Commission said that TEMU’s risk assessment is inadequate because it is based on general industrial information, not the characteristics of the platform.

He said TEMU will violate the Digital Services Law if the pre -findings of the Commission are ultimately confirmed.

“Such a decision may impose a fine of the provider up to 6% of the worldwide total annual turnover and order the provider to take measures to address violations.” He said.

An EU spokesman said Temu could respond to the EU findings in the coming weeks.

A TEMU spokesman said the company will continue to “fully cooperate” with the commission.

The Commission said that the findings were only related to one aspect of a wider EU investigation into Temu.

TEMU is suspected of violating the use of addictive design features, transparency of recommendation systems and access to data for researchers.

(Reporting by Bart Meijereding by Ros Russell)