DSA: Temu and Shein must provide information to EU

By July 12, the two Chinese online retailers Temu and Shein must provide further information on how they comply with the obligations under the Digital Services Act.

The EU Commission has sent formal requests for information to the online marketplaces Temu and Shein under the Digital Services Act (DSA). The two Chinese companies have until July 12 to provide further information on how they are complying with their obligations under the DSA.

Temu and Shein: Notification of illegal products

Following their classification as very large online platforms (VLOPs), Temu and Shein are subject to supervision by the Commission - also with regard to the general obligations of the DSA, which came into force on February 17, 2024

Specifically, the request for information covers several key areas. One key point is the reporting mechanism for illegal products. The platforms must explain how users can report illegal products and how these reports are processed. Another focus is the design of online interfaces to ensure that users are not deceived or manipulated by so-called "dark patterns". These manipulative design elements are intended to entice users to perform certain actions that they may not have intended.

Another aspect of the request for information concerns the protection of minors. Temu and Shein are to explain what measures they have taken to protect underage users. The transparency of the recommendation systems is also being investigated. The platforms must disclose how their algorithms recommend content and products.

The traceability of suppliers is also an important point. Platforms must ensure that the identity of merchants can be verified and their products traced in order to prevent the distribution of unsafe and counterfeit products. Finally, attention is also paid to the general design of the user interface to ensure user-friendly and transparent interaction.

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Complaint from consumer organizations about Temu and Shein

This request for information is also based on a complaint from consumer organizations to the Commission. The EU Commission will assess the responses from Temu and Shein and determine the next steps based on this. This could mean the formal opening of proceedings under Article 66 of the DSA.

According to Article 74 (2) of the DSA, the Commission also has the power to impose fines for incorrect, incomplete or misleading information in responses to requests for information. In the event of non-response, the Commission may decide to request the information by means of a decision. In this case, failure to reply in time could lead to the imposition of periodic penalty payments.

Temu and Shein have four months from the date of designation to comply with the stricter provisions of the DSA. In particular, the obligation to properly assess and mitigate any systemic risks posed by their services, such as the proliferation of unsafe and counterfeit products.

Link tip: Press release EU Commission

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