Recently, it is reported that Chinese fast-fashion e-commerce retailers Temu and Shein have been ordered by EU tech regulators to provide detailed information on their compliance with EU online content rules by July 12. This request follows complaints from consumer bodies and comes as both companies face stricter requirements under the Digital Services Act (DSA). Due to their extensive user bases, Temu and Shein have been designated as Very Large Online Platforms, necessitating increased efforts to combat illegal and harmful content on their platforms.
The European Commission has asked the companies to explain how they enable users to report illegal products and how they manage their online interfaces to prevent deception or manipulation through so-called dark patterns. Additionally, the Commission seeks information on the companies’ measures to protect minors, the transparency of their recommendation systems, the traceability of traders, and their compliance by design.
“This enforcement action is also based on a complaint submitted to the Commission by consumer organizations. Both Temu and Shein must provide the requested information by July 12, 2024,” the Commission stated.
Temu has expressed its cooperation with the Commission, with a spokesperson stating, “We are fully committed to complying with all applicable laws and regulations in the markets where we operate.” Shein has not yet provided a comment.
Violations of the DSA can result in fines of up to 6 percent of a company’s global turnover.
