Chinese retailers Temu and Shein have been ordered by the EU's technology regulators to provide details on how they comply with EU online content rules by July 12, following complaints from consumer organizations.
According to Ziare both companies face stricter requirements under the Digital Services Act (DSA) due to their designation as Very Large Online Platforms, which is attributed to their extensive user bases.
These requirements include additional measures to combat illegal and harmful content on their platforms.
Enhanced Scrutiny on User Protection and Transparency
The European Commission has requested information from Temu and Shein on how they allow users to report illegal products and how they manage online interfaces to prevent user deception or manipulation through so-called "dark patterns."
The Commission is also seeking more details on child protection measures, transparency of their recommendation systems, traceability of merchants, and compliance by design.
"This enforcement action is also based on a complaint filed with the Commission by consumer organizations. Both Temu and Shein must provide the requested information by July 12, 2024," the Commission stated in a release.
Retailers Respond to EU Compliance Requests
Temu has confirmed its cooperation with the Commission, with a spokesperson stating in an email, "We would also like to reiterate that we are fully committed to complying with all applicable laws and regulations in the markets where we operate."
Similarly, Shein has affirmed its intention to work closely with the Commission, with a spokesperson noting, "We have received the information request from the European Commission and are working to respond promptly."
According to the European Union, violations of the DSA can result in fines of up to 6% of a company's global turnover.
