The European Commission imposed a fine of 200 million euros on Temu on Thursday. The committee stilt that the Chinese online store does not do enough to prevent illegal products from being offered on the platform. With this, Temu breaks the Digital Services Act (DSA), the EU’s digital legislation.
Never before has such a high fine been imposed for breaking the DSA. According to the commission, it is “very likely” that online visitors from the EU will encounter illegal products on Temu. For example, a “very large percentage” of the chargers offered do not comply with safety regulations. The online store itself would underestimate how often this happens.
In addition, the Temu site would increase the risk of distribution of illegal products. This is done, for example, by recommending certain products.
European Commissioner Henna Virkkunen describes risk assessment as “the backbone of the DSA”. By failing to do so, “regulators, users and the public are left in the dark about the potential harm that illegal products sold on Temu can bring,” Virkkunen said.
Temu has until August 28 to draw up an action plan to reduce the risks of illegal products on its site. If this is not done, new fines may follow.
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