The European Consumer Organization’s network (BEUC) has lodged a complaint with the European Commission against Chinese fast-fashion retailer Temu, alleging a breach of the Digital Services Act (DSA). The Chinese PDD group owns the e-commerce platform, which started its operations in the European market in early 2023.
In addition to the main complaint to the European Commission, 17 BEUC members have filed duplicate complaints with their national competent authorities against Temu. The complaint alleges that the company has not adequately safeguarded its consumers and has engaged in manipulative practices considered illegal under the DSA.
Specifically, the complaint accuses Temu of failing to transparently provide essential information that will determine whether the product meets EU product safety requirements. It also criticizes Temu for its opaque recommendation system.
The BEUC has asked the appropriate digital services coordinator to start formal proceedings and assess whether Temu has violated multiple articles of the DSA, concerning measures such as terms and conditions, out-of-court dispute resolution, and ‘compliance by design’.
The European Commission has been called upon to classify Temu as a “very large online platform” (VLOP) which, according to the DSA, must comply with rigorously outlined rules, including enhanced transparency and accountability.
According to a report by Reuters, Temu has responded to the complaint, stating that it is taking the matter seriously. It hopes to continue its dialogue with the relevant parties to improve consumer service.
The BEUC, established in 1962, serves as an umbrella organization for 45 autonomous consumer organizations from 31 countries, including 26 EU Member States. The BEUC’s main role is to represent these national organizations to EU institutions and safeguard European consumers’ interests.
For more in-depth information, you may refer to the original report on JURIST.