Tech Desk 
Nov 05, 2024
Emerged on the retailing stage recently to rival retailer giants like Amazon and Alibaba, the Chinese online retailer Temu appears to have dropped into hot waters for allegedly selling illegal products on the platform.
EU tech regulators have launched a probe to determine whether the newcomer retailer contravened regulations aimed at preventing the sale of illegal products.
While the investigation could bring Temu to the tribunal and might as well incur substantial fines, the EU investigation's primary focus will be the enticing design of Temu’s service, including its game-like reward programmes, and the way it endorses certain products.
Temu reportedly selling illegal products
Citing EU tech regulators, Business Recorder reported that the European Commission initiated its probe under the Digital Services Act (DSA), which mandates significant efforts and practices by huge tech giants such as Temu to stop illegal and harmful content.
It was also learned that the scrutiny was also prompted by the pan-European consumer organisation BEUC and 17 of its national members.
“There is a real kind of, you know, suspicion, that not enough is done, in an effective way, to really prevent the dissemination of illegal products. Rogue traders are reappearing with different identities,” said an EU official.
With around 92 million users in the 27-country European Union and being a unit of Chinese e-commerce giant PDD Holdings, Temu has acceded to comply with regulators.
“Temu takes its obligations under the DSA seriously, continuously investing to strengthen our compliance system and safeguard consumer interests on our platform,” read a statement issued by Temu.
The company also its talks were underway to become a participant in a voluntary EU initiative aimed at preventing the sale of counterfeit products.
