Temu Breached DSA with Illegal Products

Temu Breached DSA with Illegal Products
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The European Commission preliminarily found that Temu breached the obligation under the Digital Services Act (DSA) to properly assess the risks of illegal products being disseminated on its marketplace. Evidence suggests that consumers in the EU face a high risk of encountering illegal products on the platform.

Specifically, the analysis of a mystery shopping exercise conducted by the Commission found that consumers shopping on Temu are very likely to find non-compliant products among the offers, such as baby toys and small electronics. According to the EC analysis, Temu's risk assessment in October 2024 was inaccurate, relying on general industry information rather than specific details about its marketplace. This may therefore have led to inadequate mitigation measures against the dissemination of illegal products. The EC will continue the investigation related to other suspected breaches.

If the Commission's preliminary views were to be ultimately confirmed, the EC would adopt a non-compliance decision finding that Temu is in breach of Article 34 of the DSA. Such a decision could entail fines of up to 6% of the total worldwide annual turnover of the provider and order the provider to take measures to address the breach. A non-compliance decision may also trigger an enhanced supervision period to ensure compliance with the measures the provider intends to take to remedy the breach.