Temu, the low-cost e-commerce marketplace owned by Pinduoduo, has been designated as a "very large online platform" (VLOP) under the European Union's Digital Services Act (DSA). This designation subjects Temu to the EU's strictest rules, following coordinated complaints from European consumer protection groups about alleged DSA breaches.
Additional Scrutiny
Temu now joins 24 other companies, including Alibaba, Alphabet, Amazon, and Meta, in facing extra obligations under the DSA. These obligations involve increased scrutiny over the use of algorithms, AI, content rankings, and recommendation tools. Temu must also assess and mitigate "systemic risks" such as counterfeit, illegal, or unsafe products listed on its platform.
Compliance Timeline
Temu has until the end of September to comply with these additional rules due to a four-month grace period from the point of notification. The company will need to work with the European Commission and the Irish Digital Services Coordinator to provide regular risk assessment reports, initially and then annually.
Official Statement
A spokesperson for Temu stated that the company acknowledges the European Commission's designation and is committed to adhering to the DSA's rules to ensure user safety, transparency, and protection within the EU.
