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The European Commission sent a request for information to Temu regarding traders selling illegal goods on its marketplace under the online safety regulation Digital Services Act (DSA), according to a Friday (11 October) press release.
Temu, owned by PDD Holdings, is among the e-commerce platforms facing increasing scrutiny over sales of illegal goods. Its founder, Colin Huang, previously founded and was CEO of Pinduoduo, one of China’s largest e-retailers.
This request could be the first step for the Commission to start an official investigation under the DSA. Temu is required to respond by 21 October, detailing the measures it has taken to mitigate “the presence and reappearance of traders selling illegal products on its online marketplace” and those taken to reduce the risks of disseminating illegal products and threats to consumer protection and health.
Temu has been subject to general DSA rules since February when the regulation came into force.
However, in May, Temu was designated a very large online platform (VLOP), meaning it had to comply with stricter rules under the DSA, including assessing and mitigating systemic risks – such as the spread of unsafe and counterfeit products – by 3 October.
According to the DSA, VLOPs are platforms with more than 45 million users, which entail a “systemic risk” for society and must follow a specific regime of content moderation.
Temu has received the request and is fully cooperating, a company spokesperson told Euractiv. The firm has “taken further significant measures since being designated a VLOP” and continues to “refine” its practices, they said.
This is not the first time the Commission has sought information from Temu. In June, the platform was asked to provide details about mechanisms enabling users to flag illegal products.
Member states have been building pressure in this field. In late September, Germany, Austria, Denmark, the Netherlands, and France asked the Commission and Council to “strictly enforce” the DSA on VLOPs, including Temu.
Goods sold on these platforms do not comply with European standards, consumer protection and market surveillance authorities have found, according to the press release.
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The post European Commission demands information from Temu over illegal goods appeared first on Energy News Beat.
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