EU preliminarily finds PDD’s Temu in breach of DSA

The European Commission has preliminarily found Temu in breach of the obligation under the Digital Services Act to properly assess the risks of illegal products being disseminated on its marketplace. Evidence showed that there is a high risk for consumers in the EU to encounter illegal products on the platform. Specifically, the analysis of a mystery shopping exercise conducted by the Commission found that consumers shopping on Temu are very likely to find non-compliant products among the offer, such as baby toys and small electronics. According to the Commission’s analysis, Temu’s risk assessment of October 2024 was inaccurate and relying on general industry information rather than on specific details about its own marketplace. This may therefore have led to inadequate mitigation measures against the dissemination of illegal products. The Commission will continue its investigation in relation to other suspected breaches opened in October 2024, including the effectiveness of its mitigation measures, the use of addictive design features, the transparency of its recommendation systems, and its access to data for researchers.