Investigation Targets Product Safety, Transparency, and Labor Practices in Temu’s Operations
The European Union has officially launched an investigation into Chinese e-commerce platform Temu for neglecting measures preventing the sale of illegal products, including in Ireland. The investigation, under the EU’s Digital Services Act (DSA), finds that large-scale online platforms fail to address consumer safety and content moderation concerns.
Temu has become a go-to shopping platform for many Irish consumers. “I shop a lot on TEMU because it’s cheap and affordable, I’ve heard of some claims about issues with their regulation but it hasn’t really been a problem for me since I only buy clothes from them,” says 21-year-old student Christine Clarke.
The e-commerce firm owned by PDD Holdings launched in Europe last year and rapidly gained popularity, reaching 92m active users per month across the EU alone. However, the platform has faced criticism for failing to police product listings, with consumer groups raising red flags over toxic and unsafe goods. “I will never buy from them,” says 19-year-old student Camille Martin, “Platforms like Temu and Shein are often appealing because they’re cheap and have a wide product selection, but they rely on suppliers and manufacturers that don’t have transparent labour practices. As customers, I don’t think we should support unethical labour practices.”
EU Cracks Down on Consumer Safety and Illegal Goods
The regulators are now taking a closer look at whether Temu’s oversight is good enough to stand up to EU law as well as whether addictive, gamelike features have consequences for physical and mental health.
Under the DSA, platforms with over 45 million users in the EU are obliged to take strong measures to limit illegal content- including unsafe products – penalizable by fines of up to six percent of their global income. The investigation follows an October request from the EU Commission for detailed information regarding Temu’s policies on addressing the sale and resurgence of illegal products.
“It is important that Temu complies with our standards to protect consumers,” EU tech chief Margrethe Vestager states in a statement.
The Dangers of Gamification: Temu’s Addictive Features Under Fire
The investigation also includes the company’s product recommendation algorithms, particularly those that ensure transparency and safety for its users. Temu said in an emailed statement that it will now fully cooperate with the Commission, reiterating its commitment to increasing compliance and better-protecting consumer interests.
The Temu investigation is among many ongoing DSA probes into AliExpress, TikTok, and Meta’s social media sites as the EU continues its approach toward holding Big Tech responsible for online content safety.