Popular shopping site faces EU blowback over alleged illegal and unsafe product sales
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You're in good company if you've snagged a deal or two from a popular online marketplace lately.
The ultra-low prices and massive product range have made it a go-to for shoppers chasing a bargain.
But behind the tempting offers, officials are beginning to raise serious questions. Concerns are growing that these savings might be hiding risks consumers haven’t considered.
Temu, a Chinese-founded online shopping giant, has found itself in the crosshairs of EU regulators.
The accusations are selling products that are 'high risk for consumers' and failing to properly assess and manage the dangers of illegal or non-compliant goods on its platform.
The European Commission, the EU’s executive arm, recently released a preliminary finding that paints a worrying picture.
According to their investigation, there’s a 'high risk for consumers in the EU to encounter illegal products on the platform.'
This isn’t just speculation—mystery shoppers found it was 'very likely' to stumble upon non-compliant items, including baby toys and small electronics, both of which can pose serious safety risks if they don’t meet strict standards.
Temu only entered the European market in 2023, but it’s already become wildly popular, boasting nearly 94 million monthly active users across the 27 EU countries.
With that kind of reach, even a small percentage of unsafe products could affect millions of people.
The EU’s concerns go beyond just a few dodgy products. Regulators say Temu’s own risk assessment, submitted in October 2024, was 'inaccurate and relying on general industry information rather than on specific details about its own marketplace.'
In other words, Temu may not be taking its responsibilities seriously enough when it comes to protecting shoppers.
This investigation is part of a much larger effort by the EU to rein in the power of global tech giants.
The Digital Services Act (DSA), which came into force recently, is designed to force the world’s largest online platforms to do more to protect consumers and police illegal content.
If Temu is found to be in breach of the DSA, the consequences could be severe.
The EU can impose fines of up to 6% of a company’s total worldwide annual turnover—a potentially massive penalty for a company of Temu’s size.
They can also force Temu to make sweeping changes to how it operates.
And Temu isn’t alone. Other online giants, including AliExpress, Facebook, Instagram, X (formerly Twitter), and TikTok, are also under investigation for similar issues.
The EU is making it clear: if you want to do business in Europe, you need to play by the rules.
While this investigation is happening in Europe, it raises important questions for Australian shoppers.
Temu has become increasingly popular here too, with many Aussies snapping up bargains on everything from homewares to electronics.
But if the platform is struggling to keep dangerous or illegal products off its virtual shelves in Europe, could the same be happening here?
Australia has its own consumer protection laws, but enforcement can be tricky when dealing with overseas-based online retailers.
The Australian Competition and Consumer Commission (ACCC) has previously warned about the risks of buying from international platforms, especially when it comes to product safety and returns.
The EU’s concerns don’t stop at Temu. Last year, a staggering 4.6 billion packages entered the EU—more than 145 every second—with 91 per cent coming from China.
The sheer volume of these cheap imports makes it difficult for regulators to keep up, and the EU is now considering a two-euro flat fee per parcel to help manage the flood.
This is a global issue, and Australia is not immune. Our own postal system has seen a surge in small, inexpensive parcels from overseas retailers, raising questions about product safety, environmental impact, and the future of local businesses.
Have you shopped on Temu or similar sites? Have you ever received a product that didn’t meet your expectations—or worse, seemed unsafe? Do you think Australia should follow the EU’s lead in cracking down on online marketplaces? We’d love to hear your thoughts and experiences in the comments below.
Read more: This massive change by popular budget retailer could impact your wallet—find out how!
The ultra-low prices and massive product range have made it a go-to for shoppers chasing a bargain.
But behind the tempting offers, officials are beginning to raise serious questions. Concerns are growing that these savings might be hiding risks consumers haven’t considered.
Temu, a Chinese-founded online shopping giant, has found itself in the crosshairs of EU regulators.
The accusations are selling products that are 'high risk for consumers' and failing to properly assess and manage the dangers of illegal or non-compliant goods on its platform.
The European Union has accused Temu of not adequately protecting consumers, finding that shoppers in the EU are at 'high risk' of encountering illegal and non-compliant products on the platform, including items like baby toys and electronics. Credit: Facebook
The European Commission, the EU’s executive arm, recently released a preliminary finding that paints a worrying picture.
According to their investigation, there’s a 'high risk for consumers in the EU to encounter illegal products on the platform.'
This isn’t just speculation—mystery shoppers found it was 'very likely' to stumble upon non-compliant items, including baby toys and small electronics, both of which can pose serious safety risks if they don’t meet strict standards.
Temu only entered the European market in 2023, but it’s already become wildly popular, boasting nearly 94 million monthly active users across the 27 EU countries.
With that kind of reach, even a small percentage of unsafe products could affect millions of people.
The EU’s concerns go beyond just a few dodgy products. Regulators say Temu’s own risk assessment, submitted in October 2024, was 'inaccurate and relying on general industry information rather than on specific details about its own marketplace.'
In other words, Temu may not be taking its responsibilities seriously enough when it comes to protecting shoppers.
This investigation is part of a much larger effort by the EU to rein in the power of global tech giants.
If Temu is found to be in breach of the DSA, the consequences could be severe.
The EU can impose fines of up to 6% of a company’s total worldwide annual turnover—a potentially massive penalty for a company of Temu’s size.
They can also force Temu to make sweeping changes to how it operates.
And Temu isn’t alone. Other online giants, including AliExpress, Facebook, Instagram, X (formerly Twitter), and TikTok, are also under investigation for similar issues.
The EU is making it clear: if you want to do business in Europe, you need to play by the rules.
Temu has become increasingly popular here too, with many Aussies snapping up bargains on everything from homewares to electronics.
But if the platform is struggling to keep dangerous or illegal products off its virtual shelves in Europe, could the same be happening here?
Australia has its own consumer protection laws, but enforcement can be tricky when dealing with overseas-based online retailers.
The Australian Competition and Consumer Commission (ACCC) has previously warned about the risks of buying from international platforms, especially when it comes to product safety and returns.
The sheer volume of these cheap imports makes it difficult for regulators to keep up, and the EU is now considering a two-euro flat fee per parcel to help manage the flood.
This is a global issue, and Australia is not immune. Our own postal system has seen a surge in small, inexpensive parcels from overseas retailers, raising questions about product safety, environmental impact, and the future of local businesses.
Read more: This massive change by popular budget retailer could impact your wallet—find out how!
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