The Consumer Protection Cooperation (CPC) Network of national authorities and the European Commission (EC) has notified the Chinese online marketplace Temu of several practices on its platform that infringe on EU consumer law.
Several practices by Temu such as fake discounts, pressure selling, forced gamification, missing and misleading information, fake reviews, and hidden contact details were said to breach EU consumer protection laws.
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The CPC Network urged the e-commerce company to operate within EU consumer laws.
Currently under investigation, Temu has been requested to provide further information to the network.
The action is led by the Directorate General for Economic Inspection in Belgium, the Federal Environment Agency in Germany, and the Competition and Consumer Protection Commission in Ireland, with coordination from the EC.
The investigation encompasses various practices that may mislead consumers or unduly influence their purchasing decisions while shopping on Temu.
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By GlobalDataAdditionally, the CPC Network is assessing whether Temu complies with specific information obligations for online marketplaces under consumer law.
Last week, the commission initiated formal proceedings against Temu under the Digital Services Act (DSA).
These proceedings complement the CPC Network’s enforcement actions, aiming to ensure a safe and trustworthy online environment where consumer rights in Europe are fully protected.
From 13 December 2024, the General Product Safety Regulation (GPSR) will mandate that an economic operator established in the EU is responsible for ensuring compliance with product safety requirements.
This includes specific obligations for online marketplaces targeting consumers.
Under the GPSR, national market surveillance authorities can issue takedown orders for unsafe products identified online, further complementing the DSA.
Justice Commissioner Didier Reynders said: “All market players targeting consumers in the Single Market must respect EU consumer laws, no matter if they are established within or outside the [European] Union. This is key to protect consumers in a meaningful way and ensure fair competition. I commend national authorities for their coordinated action. Temu must now take EU rules seriously and bring its practices into full compliance with EU consumer laws.”
Temu has one month to respond to the CPC Network’s findings and propose commitments to address the identified consumer law issues.
The CPC Network may engage in dialogue with the company subject to the retailer’s response.
If the retailer fails to address the concerns raised, national authorities may take enforcement measures to ensure compliance, potentially including fines based on Temu’s annual turnover in the relevant member states.
