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The European Union is investigating the popular shopping app Temu over concerns that it may be allowing unsafe products on its platform and using potentially addictive features to keep users hooked. This investigation aims to determine if Temu is failing to meet the new standards under the EU’s strict Digital Services Act (DSA), a law designed to make digital spaces safer and fairer for everyone.
The Commission's investigation will zero in on several areas of concern. First, it will look at whether Temu is doing enough to block non-compliant products – items that don’t meet the EU’s strict health and safety regulations. This is especially critical, given the EU’s commitment to protecting consumers from unsafe goods. Regulators are also concerned about whether the platform allows previously banned sellers to return and sell their products again.
The second focus is on Temu’s design, which reportedly uses reward programs and other game-like features to keep users engaged, possibly in ways that can be addictive. These design elements could have a negative impact on users’ mental and physical well-being. “We want to ensure that Temu is complying with the Digital Services Act,” said Margrethe Vestager, the EU’s Executive Vice-President for digital affairs. “Our enforcement will guarantee a level playing field and that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all.”
Additionally, Temu’s system of recommending products will be under the spotlight. The DSA requires platforms to explain how their algorithms suggest content or products to users and offer an option that doesn’t rely on personal data. The Commission wants to ensure that Temu is transparent about these practices.
Finally, the investigation will look at Temu’s approach to data-sharing for research. The DSA mandates that very large online platforms, like Temu, make some of their public data available to researchers to promote transparency and accountability.
This investigation, while not conclusive, opens the door for further enforcement if the Commission finds violations. If so, Temu could face substantial fines or be required to make significant changes to its platform.
