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Japan Today
21 hours ago
- Business
- Japan Today
Temu accused by EU regulators of failing to prevent sale of illegal products
FILE - A page from the Temu website is shown in this photo, in New York, June 23, 2023. By KELVIN CHAN Chinese online retailer Temu was accused by European Union watchdogs on Monday of failing to prevent the sale of illegal products on its platform. The preliminary findings follow an investigation opened last year under the bloc's Digital Services Act. It's a wide-ranging rulebook that requires online platforms to do more to keep internet users safe, with the threat of hefty fines. The European Commission, the 27-nation bloc's executive branch, said its investigation found 'a high risk for consumers in the EU to encounter illegal products' on Temu's site. Investigators carried out a 'mystery shopping exercise' that found 'non-compliant' products on Temu, including baby toys and small electronics, it said. Temu said in a brief statement that it 'will continue to cooperate fully with the Commission.' The commission didn't specify why exactly the products were illegal, but noted that a surge in online sales in the bloc also came with a parallel rise in unsafe or counterfeit goods. EU regulators said when they opened the investigation that they would look into whether Temu was doing enough to crack down on 'rogue traders' selling 'non-compliant goods' amid concerns that they are able to swiftly reappear after being suspended. In its preliminary findings, the Commission found that Temu could have had 'inadequate mitigation measures' because the company was using an 'inaccurate' risk assessment that relied on general industry information, rather than specifics about its own marketplace. 'We shop online because we trust that products sold in our Single Market are safe and comply with our rules,' Henna Virkkunen, the EU's executive vice-president for tech sovereignty, security and democracy, said in a news release. "In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act. Temu has grown in popularity by offering cheap goods - from clothing to home products — shipped from sellers in China. The company, owned by Pinduoduo Inc., a popular e-commerce site in China, has 92 million users in the EU. The company will have the chance to examine the Commission's investigation files and respond to the accusations before the EU watchdogs make a final decision. Violations of the DSA could result in fines of up to 6% of a company's annual global revenue and an order to fix the problems. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
The Hindu
a day ago
- Business
- The Hindu
Temu accused by EU regulators of failing to prevent sale of illegal products
Chinese online retailer Temu was accused by European Union watchdogs on Monday of failing to prevent the sale of illegal products on its platform. The preliminary findings follow an investigation opened last year under the bloc's Digital Services Act. It's a wide-ranging rulebook that requires online platforms to do more to keep internet users safe, with the threat of hefty fines. The European Commission, the 27-nation bloc's executive branch, said its investigation found 'a high risk for consumers in the EU to encounter illegal products' on Temu's site. Investigators carried out a 'mystery shopping exercise' that found 'non-compliant' products on Temu, including baby toys and small electronics, it said. Temu said in a brief statement that it 'will continue to cooperate fully with the Commission.' The commission didn't specify why exactly the products were illegal, but noted that a surge in online sales in the bloc also came with a parallel rise in unsafe or counterfeit goods. EU regulators said when they opened the investigation that they would look into whether Temu was doing enough to crack down on 'rogue traders' selling 'non-compliant goods' amid concerns that they are able to swiftly reappear after being suspended. In its preliminary findings, the Commission found that Temu could have had 'inadequate mitigation measures' because the company was using an 'inaccurate' risk assessment that relied on general industry information, rather than specifics about its own marketplace. 'We shop online because we trust that products sold in our Single Market are safe and comply with our rules,' Henna Virkkunen, the EU's executive vice-president for tech sovereignty, security and democracy, said in a news release. "In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act. Temu has grown in popularity by offering cheap goods - from clothing to home products — shipped from sellers in China. The company, owned by Pinduoduo Inc., a popular e-commerce site in China, has 92 million users in the EU. The company will have the chance to examine the Commission's investigation files and respond to the accusations before the EU watchdogs make a final decision. Violations of the DSA could result in fines of up to 6% of a company's annual global revenue and an order to fix the problems.
1News
a day ago
- Business
- 1News
Temu accused by EU of failing to prevent sale of illegal products
Chinese online retailer Temu was accused by European Union watchdogs on Tuesday of failing to prevent the sale of illegal products on its platform. The preliminary findings follow an investigation opened last year under the bloc's Digital Services Act. It's a wide-ranging rulebook that requires online platforms to do more to keep internet users safe, with the threat of hefty fines. The European Commission, the 27-nation bloc's executive branch, said its investigation found 'a high risk for consumers in the EU to encounter illegal products' on Temu's site. Investigators carried out a 'mystery shopping exercise' that found 'non-compliant' products on Temu, including baby toys and small electronics, it said. Temu said in a brief statement that it 'will continue to cooperate fully with the Commission". ADVERTISEMENT The commission didn't specify why exactly the products were illegal, but noted that a surge in online sales in the bloc also came with a parallel rise in unsafe or counterfeit goods. EU regulators said when they opened the investigation that they would look into whether Temu was doing enough to crack down on 'rogue traders' selling 'non-compliant goods' amid concerns that they are able to swiftly reappear after being suspended. In its preliminary findings, the Commission found that Temu could have had 'inadequate mitigation measures' because the company was using an 'inaccurate' risk assessment that relied on general industry information, rather than specifics about its own marketplace. The morning's headlines in 90 seconds, including the atmospheric river arrives, Epstein's girlfriend pushes for appeal, and Jennifer Lopez's wardrobe malfunction. (Source: Breakfast) 'We shop online because we trust that products sold in our Single Market are safe and comply with our rules,' Henna Virkkunen, the EU's executive vice-president for tech sovereignty, security and democracy, said in a news release. "In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act. Temu has grown in popularity by offering cheap goods - from clothing to home products — shipped from sellers in China. The company, owned by Pinduoduo Inc., a popular e-commerce site in China, has 92 million users in the EU. The company will have the chance to examine the Commission's investigation files and respond to the accusations before the EU watchdogs make a final decision. ADVERTISEMENT Violations of the DSA could result in fines of up to 6% of a company's annual global revenue and an order to fix the problems.
Irish Examiner
2 days ago
- Business
- Irish Examiner
'High risk' of consumers finding illegal products on Temu, says European Commission
Temu is not doing enough to assess the risks of illegal products being sold online and could be in breach of a new digital services law, the European Commission said. The commission said on Monday that there was a "high risk" of consumers in the EU encountering illegal products on the e-commerce giant's platform. Specifically, analysis of a mystery shopping exercise conducted by the commission found that consumers shopping on Temu were very likely to find non-compliant products, including baby toys and small electronics. The statement is part of an investigation into the e-commerce giant under the commission's Digital Services Act (DSA), a new piece of legislation governing online content in the European Union. It forces companies that run online platforms such as e-commerce websites to assess how likely consumers are to be exposed to dangerous or illegal products, and work to lessen the risk. The commission said according to its analysis, a risk assessment carried out by Temu, which is owned by PDD Holdings, in October 2024 was "inaccurate" and "relying on general industry information rather than on specific details about its own marketplace". Henna Virkkunen, executive vice-president for 'tech sovereignty, security and democracy', said: "We shop online because we trust that products sold in our Single Market are safe and comply with our rules. "In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act. "Consumers' safety online is not negotiable in the EU - our laws, including the Digital Services Act, are the foundation for a better protection online and a safer and fairer digital Single Market for all Europeans." The company could face a fine of up to 6% of its annual worldwide turnover if the commission ultimately decides its risk assessment does not meet the companies' obligations under the DSA. The commission said officials would also continue investigating the company over other suspected breaches of the DSA such as using addictive design features and a lack of transparency on its algorithms. The EU is trying to counter what it sees as a glut of cheap and potentially unsafe products from China flooding the single market. Officials also sent a formal warning to Shein in May, saying the company's sales tactics fell foul of EU consumer protection law. Shein said it was engaging with the Commission to address concerns.
7NEWS
2 days ago
- Business
- 7NEWS
Temu accused by EU regulators of failing to prevent sale of illegal products
Chinese online retailer Temu was accused by European Union watchdogs on Monday of failing to prevent the sale of illegal products on its platform. The preliminary findings follow an investigation opened last year under the bloc's Digital Services Act. It's a wide-ranging rulebook that requires online platforms to do more to keep internet users safe, with the threat of hefty fines. The European Commission, the 27-nation bloc's executive branch, said its investigation found 'a high risk for consumers in the EU to encounter illegal products' on Temu's site. Investigators carried out a 'mystery shopping exercise' that found 'non-compliant' products on Temu, including baby toys and small electronics, it said. Temu said in a brief statement that it 'will continue to cooperate fully with the Commission.' The commission didn't specify why exactly the products were illegal but noted that a surge in online sales in the bloc also came with a parallel rise in unsafe or counterfeit goods. EU regulators said when they opened the investigation that they would look into whether Temu was doing enough to crack down on 'rogue traders' selling 'non-compliant goods' amid concerns that they are able to swiftly reappear after being suspended. In its preliminary findings, the Commission found that Temu could have had 'inadequate mitigation measures' because the company was using an 'inaccurate' risk assessment that relied on general industry information, rather than specifics about its own marketplace. 'We shop online because we trust that products sold in our Single Market are safe and comply with our rules,' Henna Virkkunen, the EU's executive vice-president for tech sovereignty, security and democracy, said in a news release. 'In our preliminary view, Temu is far from assessing risks for its users at the standards required by the Digital Services Act. Temu has grown in popularity by offering cheap goods — from clothing to home products — shipped from sellers in China. The company, owned by Pinduoduo Inc., a popular e-commerce site in China, has 92 million users in the EU. The company will have the chance to examine the Commission's investigation files and respond to the accusations before the EU watchdogs make a final decision. Violations of the DSA could result in fines of up to 6 per cent of a company's annual global revenue and an order to fix the problems.
