In particular, the commission will examine areas linked to the sale of illegal products, the potentially addictive design of the service, the systems used to recommend purchases to users, as well as data access for researchers.
The decision follows preliminary analyses of the risk assessment report provided by Temu at the end of September 2024, the replies to the commission’s formal requests for information earlier this year, and information shared by third parties.
What will the investigation look at?
The EU investigation will focus on the following areas:
- The systems Temu has in place to limit the sale of non-compliant products in the EU.
- The risks linked to the addictive design of the service, including game-like reward programmes.
- The compliance with the DSA obligations linked to how Temu recommends content and products to users.
- The compliance with the DSA obligation to give researchers access to Temu’s publicly accessible data.
What is Temu?
Founded in September 2022, Temu is an online marketplace and app that stocks millions of products, including clothes, technology, homeware, cosmetics and toys, at rock-bottom prices.
Products are listed by third-party sellers, rather than Temu itself, and shipped directly from the manufacturers or producers in China to shoppers.
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The site’s marketing strategy encourages users to promote the app and its products by combining referrals, social media and a ‘gamified’ way of shopping.
An investigation by Which? earlier this year found Temu was selling unsafe electric heaters and cheap electricals (such as chargers and plugs) that fell apart during stress testing.
What do the experts say?
Rocio Concha, director of policy and advocacy at Which?, said: “It’s right that the European Commission is holding Temu to account by investigating whether it is failing to prevent dangerous products ending up in people’s homes. There are significant barriers to taking similar action in the UK, as weak consumer protection laws mean Temu and other online marketplaces are not held responsible for unsafe products being sold by third parties.
“The Government must use its Product Regulation and Metrology Bill to give online marketplaces greater legal responsibility for preventing unsafe products from being sold on their platforms and to enable tough enforcement action, including heavy fines, if they flout the rules.”
