European oversight is intensifying for Temu, one of the fastest growing online marketplaces in the world, as preliminary findings from a European Commission investigation indicate a “high risk of users being exposed to illegal and unsafe products”.
According to a report by the Financial Times, the EU investigation identified items such as baby toys, small electronic devices and other consumer products that are considered counterfeit, non-compliant with European standards or potentially dangerous.
See also: EU: Complaint against Shein for misleading practices
The case is concerning given that Temu, a subsidiary of China’s PDD Holdings, operates on an ultra-low-cost model and has already amassed a huge user base across Europe. In 2024, the European Union designated the platform as a Very Large Online Platform (VLOP) under the Act Digital Services (DSA), which carries strict legal obligations to protect consumers from illegal online practices.
Possible sanctions and more investigation into the inside
If Temu is found to have violated the law, the European Commission could impose fines of up to 6% of the company’s global annual revenue . The investigation is ongoing into additional potential violations , such as the use of addictive design mechanisms , a lack of transparency in recommendation algorithms and limited access to the platform’s systems by independent researchers
See also: Shein increases safety checks on its products
Temu, for its part, is now being asked to formally respond to the EU's findings. The outcome of the investigation could have wider implicationsas the DSA law is gradually being implemented on major platforms with the aim of holding them accountable and imposing greater security on the digital ecosystem.
Safe prices or risky markets? The gray role of ultra-cheap marketplaces
Temu’s case highlights the growing concern about ultra-cheap online shopping. Platforms like Temu and Shein exploit fragmented quality control, cross-border trade agreements, and unclear product origins, creating a low-price — but high-risk — for consumers.
Unlike traditional retailers or even big players like Amazon and eBay, emerging low-cost platforms often bypass compliance checks, seller verification and quality assessment of goods. This results in the circulation of uncertified electronics, counterfeit products and items without basic safety guidelines or CE marking, as required in the EU.
See also: Complaints against TikTok, SHEIN, Temu for GDPR violation (also in Greece)
DSA in practice: Is digital “police” coming for platforms?
The Temu investigation is a credibility test of the effectiveness of the DSA, the new European digital legislation that aims to bring rules and transparency to online markets and services. If Temu is found to be in breach of its obligations, it would be the first major low-cost platform to face substantial sanctions under the new regulatory environment.
At the same time, the case highlights the need for more consumer education and awareness, so that buyers are aware of the risks when choosing "unbeatable prices" from uncontrolled sources.
Source: www.theverge.com
