EU Commission requests information from Temu and Shein
The Chinese marketplace operators Temu and Shein must provide comprehensive information on controversial business practices within two weeks.
A look at the Shein website: Watch out, summer sale!
(Image: Shein)
The EU Commission is formally requesting information from the shopping platforms Temu and Shein on various controversial practices. The two Chinese providers have until July 12 to provide information on how they are fulfilling their obligations under the Digital Services Act (DSA). This prescribes rules for online marketplaces that must be observed, for example regarding recommendation systems and manipulative interface design. The EU Commission now wants additional information on these so-called dark patterns. In addition, providers are to provide information on their reporting mechanisms for potentially illegal or otherwise incorrect offers on their platforms. The supervisory authority is also demanding detailed information on the protection of children and minors and on traders.
Some of these requirements are based on information compiled by consumer protection organizations. The Federation of German Consumer Organizations (vzbv) issued a warning to Temu operator Whaleco in March, and the company issued a cease-and-desist declaration in May. Other European consumer protection organizations also took action. Shein was also warned by vzbv and issued a cease-and-desist declaration in May. However, the consumer organizations can only demand a comparatively small part of the DSA rules from the providers; supervisory authorities are responsible for the actual enforcement of the Digital Services Act.
Significant fines possible
Their powers of intervention are extensive: they can request internal documents, question witnesses and even carry out house searches if necessary. Non-compliance with the DSA regulations, incorrect or missing information can result in severe fines, which also depend on turnover.
The EU Commission only classified Temu as a "very large operator" (VLOP) at the end of May 2024. Shein was already classified as a VLOP at the end of March. Following the official VLOP determination by the Commission, the providers have four months to fully comply with the DSA rules. This transitional period is currently still running in both cases. However, the EU Commission has already made it clear recently that it does not intend to be very patient, particularly in the case of platforms that are sometimes used to sell life-threatening and illegal goods.
(dahe)