The European Consumer Organization’s network (BEUC) lodged a complaint on Thursday with the European Commission against Chinese fast-fashion retailer Temu over a potential breach of the Digital Services Act (DSA). Additionally, 17 BEUC members have filed the same complaint with their national competent authorities against the e-commerce platform, which is owned by the Chinese PDD group and has been active in the European market since early 2023.
According to the complaint, Temu has failed to protect consumers and has used manipulative practices, which are illegal under the DSA. In particular, it has often failed to provide crucial information relevant to determining whether the product meets EU product safety requirements and frequently lacks clarity on how it recommends products.
“Temu may be taking Europe by storm, but today we want to shine a light on its many illegal practices which are disregarding consumers’ interests and which authorities must rein in. The online marketplace is rife with manipulative techniques that are designed to push consumers to spend more on the platform,” said Monique Goyens, Director General at the BEUC.
The BEUC has also further stated that it requests the competent digital services coordinator to initiate formal proceedings and assess whether Temu has breached Article 14 (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 European Commission was further asked to designate Temu as a “very large online platform” (VLOP) and as a result, carefully monitor its compliance with its obligations as a VLOP. Under the DSA, companies designated as a VLOP must abide by strict rules, including increased transparency and accountability.
According to Reuters, Temu has made a statement stating that it takes the complaint “very seriously” and hopes to continue its dialogue with relevant stakeholders to improve its service for consumers.
The BEUC was founded in 1962 and is an umbrella organization for 45 independent consumer organizations from 31 countries including 26 EU Member States. It is primarily responsible for representing the national organizations to the EU institutions and defending the European consumers’ interests.