The European Commission has asked the two popular Chinese online retailers, Temu and Shein, to provide details by July 12 on how they meet the bloc’s content moderation obligations. The Commission has sent formal requests to the two companies, asking them, among other things, how they protect minors and ensure that their online interfaces do not deceive or manipulate users, according to a statement issued on June 28. The Commission will decide what to do next based on its assessment of the information provided by the two companies, the statement read, adding that it could initiate a formal investigation.
Confirmed violations of DSA can lead to fines that go up to 6 percent of their global turnover. Both Chinese e-retailer giants are facing the “most stringent rules” under the Digital Services Act (DSA) after being added to the European Union’s list of “very large online platforms” earlier this year, according to a May 31 press release from the Commission. The request is based on a complaint lodged by BEUC, which represents 44 consumer groups from 31 countries across Europe.
The report said Temu employs “manipulative” techniques, such as “dark patterns” that subtly steer consumers into making decisions that may not align with their original intentions. The report raised further concerns about the lack of transparency regarding how Temu recommends products to consumers, raising questions about the information the site used and the design of its algorithms. �.