Chinese online store Temu is suspected of distributing fake pharmaceuticals, cosmetics and toys.
The European Union has launched a formal investigation into Chinese online retailer Temu over concerns that it is selling illegal products. The Guardian writes about this on Thursday, October 31.
The European Commission has raised concerns that the platform, owned by PDD Holdings, violates the new Digital Services Act (DSA), which regulates technology companies. Temu does not have a strong enough system in place to prevent unscrupulous sellers whose products reappear, sometimes within days of being removed, and sell fake products.
Concerns about the sale of counterfeit products, pharmaceuticals, cosmetics and toys have been raised by various authorities across Europe, particularly in Germany, Denmark and Ireland.
“We received a lot of information from other authorities, but there are real suspicions that not enough is being done, not effectively, to really prevent the spread of illegal products,” said a European Commission official.
The EU is also concerned about aggressive sales tactics on the platform with “inviting designs”, including “in-game rewards”.
If a company is found to have violated the Digital Services Act, it can face heavy fines. The European Commission emphasizes that at this stage these are only suspicions and the investigation is intended to find out if the problem is systemic.
Since launching in April 2023, Chinese online retailer Temu has grown rapidly in the EU market, selling everything from cosmetics to clothing, as well as furniture and appliances, direct from China, and has more -about 100 million users.
We remind you that the European Commission has introduced countervailing duties on the import of electric vehicles from China for five years. Tariffs can reach 35.3% and depend on suppliers.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.