Digital Services Act
Commission requests information under the Digital Services Act from Temu on traders selling illegal products on its marketplace
The Commission has sent a request for information (RFI) to Temu under the Digital Services Act (DSA), requesting the platform to provide detailed information and internal documents on the mitigation measures taken against the presence and reappearance of traders selling illegal products on its online marketplace. The RFI further requires Temu to supply additional data and information on the measures adopted to mitigate the risk of dissemination of illegal products, as well as risks relating to consumer protection, public health and users' wellbeing. Moreover, the Commission is also requesting details on the recommender systems of Temu and the risk to the protection of users' personal data.
Temu must provide the requested information by 21 October 2024. Based on the assessment of Temu's replies, the Commission will determine the next steps. This could entail the formal opening of proceedings pursuant to Article 66 of the DSA. Pursuant to Article 74 (2) of the DSA, the Commission can impose fines for incorrect, incomplete, or misleading information in response to an RFI. In case of failure to reply, the Commission may issue a formal request by decision. In this case, failure to reply by the deadline could lead to the imposition of periodic penalty payments.
Temu was designated as a Very Large Online Platform (VLOP) under the DSA on 31 May 2024. While Temu had to comply with the DSA's general rules since February 2024, the online marketplace also had to comply with the more stringent rules applicable to VLOPs and to prepare a risk assessment report as of 3 October 2024. The Commission has already sent an RFI to Temu on 28 June 2024 on the measures they took to comply with the DSA obligations related to the so-called ‘Notice and Action mechanism' to notify illegal products, ‘dark patterns' on its online interfaces, the protection of minors, the transparency of recommender systems, the traceability of traders and compliance by design.
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