6 days ago
There is simply a precocious consequence for consumers to brushwood forbidden products for illustration babe toys connected nan platform, nan European Commission wrote.
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The European Commission has slapped Temu pinch a €200 cardinal ($232 million) good for failing to forestall nan income of forbidden products connected its platform. "Evidence showed that location is simply a precocious consequence for consumers successful nan EU to brushwood forbidden products connected nan platform" successful usurpation of nan Digital Services Act (DSA) including babe toys and mini electronics, nan EC wrote successful a press release.
Temu first entered nan European marketplace successful 2023, trading products astatine bargain-basement prices ranging from clothing to electronics. European regulators opened a probe into nan company's activities shortly afterwards, claiming it was selling illegal products.
At nan time, Temu said that it would afloat cooperate pinch regulators to amended information and fortify its compliance system. However, nan EC wrote that "Temu's consequence appraisal of October 2024 was inaccurate... [and] whitethorn truthful person led to inadequate mitigation measures against nan dissemination of forbidden products."
The good was specifically related to nan company's compliance measures, but regulators are besides probing Temu for trading circumstantial products that don't meet EU information standards. France has called for stronger measures against online China-based platforms aft accusing some AliExpress and Shein for trading childlike activity dolls connected their platforms.
In a connection to The Financial Times, Temu said it disagreed pinch nan EC's determination and called nan good "disproportionate." It added that it had taken further steps to fortify its governance and consequence assessment, and said nan determination did "not bespeak nan existent authorities of our systems."
Temu is conscionable nan 2nd institution to beryllium penalized by Europe nether nan Digital Services Act, pursuing a €120 cardinal ($140 million) fine levied connected Elon's Musk's X platform. Temu now has until August 2026 to travel up pinch an action scheme detailing really it will reside forbidden merchandise income successful Europe. If that's deemed unsatisfactory, nan EC could levy fines up to six percent of its yearly world revenue. On apical of that, Temu's European business whitethorn return a deed successful July erstwhile nan bloc starts imposing a level €3 interest connected ecommerce parcels weighted nether €150.
