EU accuses online shopping platform Temu of 'illegal' product sales
"Evidence showed that there is a high risk for consumers in the EU to encounter illegal products on the platform," the European Commission said in its preliminary finding. It pointed to a mystery shopping exercise that found consumers were "very likely to find non-compliant products among the offer, such as baby toys and small electronics."
Temu has become wildly popular in the EU despite only having entered the continent's market in 2023, and now has 93.7 million average monthly active users in the 27-country bloc.
Temu under DSA investigation
Temu is under investigation as part of a law known as the Digital Services Act (DSA) that forces the world's largest tech firms to do more to protect European consumers online and better police content online. The EU said Temu's October 2024 risk assessment was "inaccurate and relying on general industry information rather than on specific details about its own marketplace."
If confirmed to be in breach, the EU can slap a fine on Temu. Fines under the DSA can go as high as 6% of a company's total worldwide annual turnover and force it to make changes to address violations.
Launched in October, the EU probe continues to investigate other suspected breaches including the use of addictive design features that could hurt users' physical and mental well-being and how Temu's systems recommend content and products.
Temu will now be able to respond to the EU regulators' findings and defend itself, but there is no time limit on how long an investigation may last.
EU law under attack
The DSA is part of the EU's reinforced legal weaponry to curb the excesses of Big Tech, with stricter rules for the world's biggest platforms. It has faced criticism from the US administration under President Donald Trump.
The Republican-dominated judiciary committee of the US House of Representatives described the DSA in a scathing report as a "foreign censorship threat" on Friday. Staunch Trump ally Jim Jordan, committee chair, will meet with EU Tech Sovereignty Commissioner Henna Virkkunen in Brussels, on Monday.
There are currently other DSA probes into Chinese online retailer AliExpress, social media platforms Facebook and Instagram and X as well as TikTok.
The EU also wants to crack down on cheap packages that flood into the bloc each year, with a proposal under discussion for a €2 flat fee per parcel. Last year, 4.6 billion such packages entered the EU – more than 145 per second – with 91% originating in China. The EU expects the numbers to increase.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
France 24
an hour ago
- France 24
Trump says to name new labor statistics chief this week
In a post on his Truth Social platform, Trump reiterated -- without providing evidence -- that Friday's employment report "was rigged." He alleged that commissioner of labor statistics Erika McEntarfer had manipulated data to diminish his administration's accomplishments, drawing sharp criticism from economists and a professional association. "We'll be announcing a new (labor) statistician some time over the next three-four days," Trump told reporters Sunday. He added Monday: "I will pick an exceptional replacement." US job growth missed expectations in July, figures from the Bureau of Labor Statistics showed, and sharp revisions to hiring figures in recent months brought them to the weakest levels since the Covid-19 pandemic. Trump ordered the removal of McEntarfer hours after the figures were published. "We had no confidence. I mean the numbers were ridiculous," Trump told reporters Sunday. He charged that McEntarfer came up with "phenomenal" numbers on his predecessor Joe Biden's economy before the 2024 election. Hiring slowdown Even as he called for more reliable data Monday, White House economic adviser Kevin Hassett conceded that the jobs market was indeed cooling. But Hassett maintained in a CNBC interview that this softening did not reflect the incoming effects of Trump's flagship tax and spending legislation -- signed into law early last month. US employment data point to challenges as companies took a cautious approach in hiring and investment while grappling with Trump's sweeping -- and rapidly changing -- tariffs this year. The United States added 73,000 jobs in July, while the unemployment rate rose to 4.2 percent, the Department of Labor reported. Hiring numbers for May were revised down from 144,000 to 19,000. The figure for June was shifted from 147,000 to 14,000. These were notably lower than job creation levels in recent years. During the pandemic, the economy lost jobs. Over the weekend, Hassett defended McEntarfer's firing in an NBC News interview: "The president wants his own people there so that when we see the numbers they are more transparent and more reliable." But Trump's decision has come under fire. William Beach, who previously held McEntarfer's post, said the move set a "dangerous precedent." The National Association for Business Economics condemned her dismissal, saying large revisions in jobs numbers "reflect not manipulation, but rather the dwindling resources afforded to statistical agencies." German Finance Minister Lars Klingbeil on Monday emphasized the importance of supporting "independent, neutral and proven institutions." He said: "It is right that independent institutions remain independent and that politics do not interfere with them."
Fashion Network
an hour ago
- Fashion Network
Italian regulator hits Shein with 1 million euro greenwashing fine
Italy's competition authority (AGCM) imposed a 1 million euro (1.16 million dollar) fine on China-founded fast fashion online retailer Shein on Monday for misleading customers on the environmental impact of its products. This is Shein's second financial sanction by a European competition authority in little more than a month, after France fined the company 40 million euros on July 3 over fake discounts and misleading environmental claims. The Italian fine was imposed on Infinite Styles Services Co. Limited, a Dublin-based company that operates Shein's website in Europe, following a "greenwashing" investigation by AGCM launched last September. Shein did not immediately respond to a request for comment. AGCM said the environmental sustainability and social responsibility messages on Shein's website "were sometimes vague, generic, and/or overly emphatic, and in other cases omitted and misleading." Shein's claims on circular system design and product recyclability "were found to be false or at the very least confusing", and the green credentials of its 'evoluSHEIN by design' collection were overstated, the regulator said. Shein promotes the 'evoluSHEIN by design' collection as clothes made using more sustainable and responsible manufacturing. AGCM said consumers could be misled to think that the collection was made with eco-friendly materials and fully recyclable, "a fact that, considering the fibres used and currently existing recycling systems, is untrue". The authority also took issue with Shein's "vague and generic" commitments to cut greenhouse emissions by 25% by 2030 and to net zero by 2050, noting they contradicted its increase in emissions in 2023 and 2024. The Italian regulator said its overall assessment was influenced by an "increased duty of care" falling on Shein, "because it operates in a highly polluting sector and with highly polluting methods" such as fast and super-fast fashion. AGCM is in charge of consumer protection as well as competition. When AGCM's investigation was launched last year, Shein said it was "ready to cooperate openly with relevant Italian authorities, providing the necessary support and information to address any inquiries". Founded in China, Shein is known for its cheap tops and dresses. Its treatment of workers and environmental record came under increased scrutiny last year after reports that it was planning to list its shares in London.
Euronews
an hour ago
- Euronews
EU diplomats confirm they won't yet sanction Israel on Gaza
EU diplomats on Monday failed to agree once again on a partial suspension of Israel from the Horizon Europe fund in response to the war in Gaza, several diplomats said. Gathered online for their regular Mashreq/Maghreb Working Party and despite mounting pressure on Israel over the hunger crisis in Gaza, the 27 EU diplomats still couldn't reach any qualified majority on a European Commission proposal to cut Israel from partial access to the EU's €95 billion Horizon Europe research fund. 'The situation has not changed,' one EU diplomat said, referring to a formal meeting of EU ambassadors last week which also failed to agree to the Commission's proposal. The diplomat said the issue was now in the hands of the EU's foreign affairs ministers, who will meet informally on 29 August. With Israel facing global criticism over allowing starvation in the besieged strip and talks between Hamas and Israel at an impasse, the proposal itself would be a largely symbolic gesture. Israel would lose access to €200 millions' worth of future grants and investments in Horizon's European Investment Council (EIC) which specialises in so-called disruptive technologies. Commission officials say it would not affect support for fundamental or collaborative research. But even for a minimal sanction, there was no agreement among Europeans on Monday. Some EU countries have preferred to condemn Israel through individual initiatives like France's recognition of Palestine. The diplomat said support from the big countries like Germany or Italy, which is essential for a qualified majority vote to pass, was still lacking on Monday. Germany and Italy are part of those who 'prefer that dialogue with Israel continues', he said, while France, Spain and Ireland support the Commission proposal. Others including Romania and Finland 'are still examining' the text, he said. 'The refusal of certain member states to take even this smallest possible step to pressure Israel, while civilians continue to be killed and starved in Gaza, is absolutely incriminating,' said Martin Konecny, who heads the European Middle East Project in Brussels. Monday's meeting also took place a day after videos showing two Israeli hostages in Gaza appearing emaciated and distressed were released, sparking outrage among western leaders.
