The European Union (EU) has warned e-commerce platform Temu over alleged violations of consumer-protection laws, adding pressure on the company shortly after the EU launched a separate investigation under its Digital Services Act.
The European Commission, alongside regulators from Belgium, Germany, and Ireland, demanded that Temu address ‘misleading practices’ that include fake discounts, deceptive reviews, and hidden customer service details. They cited tactics such as the ‘fortune wheel’ game, where key terms are obscured, as violating the EU's product safety standards.
Temu, owned by Chinese parent company PDD Holdings, pledged cooperation, stating it is adapting to European regulations. The EU has given Temu a month to propose solutions, if unsatisfactory, the company could face fines based on its revenue in individual countries. This move aligns with the EU’s broader efforts to hold large digital platforms accountable for consumer rights and transparency.
