European Commission issues official warning to Temu

The European Commission and the Consumer Protection Cooperation are issuing an official warning to the Chinese online marketplace Temu. The watchdogs have warned Temu that the company must comply with European market rules following an investigation by the commission itself, the organisation wrote in a press release.

The European Commission has stated that Temu "conducts a number of practices on Temu's platform that infringe EU consumer law". The Chinese online platform has subsequently been asked to adjust these practices in line with European law.

Temu allegedly provides fake discounts, pressures consumers into making a purchase by making false edits about stock levels and purchase deadlines, forces consumers to 'spin the wheel of luck' while missing essential information about user terms, provides incorrect and incomplete information about consumers' legal rights, has false reviews on the website and hides contact details.

The European Commission is now giving Temu one month to respond to the findings and make commitments on the issues identified. If Temu fails to address the issues, national authorities may take enforcement measures to ensure compliance, the European Commission said. These include fines based on annual turnover in the member states concerned.

"Temu acknowledges the concerns raised by the European Commission and national consumer authorities and reiterates our commitment to working closely with the relevant regulators to address any issues and ensure compliance with EU laws", reports Temu in a statement.

"Although we have gained popularity with many consumers in a relatively short time, we are still a very young platform — less than two years in the EU — and are actively learning and adapting to local requirements. We will fully cooperate with this investigation, as we believe that such scrutiny benefits consumers, merchants, and the platform in the long term."

Editor's note: This article has been updated at 11th of November.