The Commission and national consumer authorities have found that Temu engages in illegal practices like fake discounts and misleading reviews. Already under DSA investigation, Temu has one month to respond to these accusations.
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The European Commission has warned Chinese retail giant Temu to fix deceptive commercial practices or face potential fines in a report following a probe by the Consumer Protection Cooperation Network, led by Belgium, Germany, and Ireland.
The report finds that Temu engages in hard selling by offering bogus discounts and hyped reviews. The company issues misleading information, including exaggerating the availability of items and fostering sales urgency with deadlines, it found. Authorities stressed that Temu fails to properly inform users of their right to return products and does not provide clear contact details for complaints.
Additionally, consumer authorities criticised Temu’s use of a “spin the fortune wheel” game, where no clear information is given about the conditions or rewards.
Temu has been given one month to respond to the Commission and outline how it plans to correct these practices. If the response is unsatisfactory, the company could face substantial fines. “It is very positive to see two sets of enforcement authorities working together to address Temu’s failings. If Temu does not comply immediately, authorities are going to have to show their teeth and start imposing big fines,” said Agustín Reyna, director-general of the European consumer organisation BEUC.
“This decision piles yet more pressure on Temu to comply with the law. It is unacceptable that Temu sends a tsunami of products to the EU, which clearly include unsafe toys or electrical goods, and in complete disregard of both consumer law and the recent Digital Services Act," Reyna added,
This investigation runs parallel to formal DSA proceedings announced last week, which relate to similar alleged harmful practices by Temu, and the addictive nature of its platform.
Temu attracts around 45 million visitors each month across the EU.