Regarding a possible violation of the Digital Services Act (DSA), the European Consumer Organization's network (BEUC) filed a complaint against Temu, a Chinese fast-fashion store, with the European Commission on Thursday. Additionally, the Chinese PDD group-owned e-commerce site, which has been operating in the European market since early 2023, has been the target of a complaint made by 17 BEUC members to their respective national competent authorities.
The complaint alleges that Temu engaged in deceptive behavior and neglected to safeguard customers, both of which are prohibited by the DSA. Specifically, it has frequently lacked clarity on how it suggests products and has regularly neglected to offer important information necessary to assess whether the product complies with EU product safety regulations.
"Temu may be sweeping through Europe, but today we want to bring attention to its numerous illegal practices that are undermining the interests of customers and that the authorities need to stop." The BEUC's Director General, Monique Goyens, stated that there are numerous deceptive tactics used in the online marketplace with the intention of encouraging users to spend more money there.
According to the BEUC, Temu may have violated terms and conditions, Article 21 (out-of-court dispute settlement), Article 25 (online interface design and organization), Article 27 (transparency of recommender systems), Article 28 (exclusion for micro and small enterprises), Article 30 (traceability of traders), and Article 31 (compliance by design) of the DSA. The coordinator of digital services is requested to start formal proceedings. Additionally, Temu was requested to be designated as a "very large online platform" (VLOP) by the European Commission, and as such, Temu's compliance with its VLOP duties was to be closely monitored. Companies that are classified as VLOPs under the DSA are subject to stringent regulations, which include heightened responsibility and transparency.
In an announcement, Temu said that it takes the complaint "very seriously" and that it intends to carry on its conversation with pertinent parties in order to enhance its customer service.
Established in 1962, the BEUC serves as a unifying force for 45 distinct consumer organizations across 31 nations, including 26 EU member states. Its main responsibilities are to defend the interests of European consumers and represent national organizations before EU institutions. /BGNES