By Hu Yun Qi
BRUSSELS (Reuters) – Chinese fast fashion e-commerce retailer Temu and its China-founded peer Shein have been ordered by EU technology regulators to submit details of how they comply with EU online content rules by July 12 following complaints from consumer groups.
After being designated as very large online platforms due to their large number of users, the two companies are subject to stricter requirements under the Digital Services Act, including strengthening measures against illegal and harmful content on their platforms.
The Commission said it had sent the companies requests for information asking about the mechanisms they use to inform users of illegal products and how they manage their online interfaces to prevent so-called dark patterns from deceiving or manipulating users.
They also asked for more details about how companies protect minors, transparency of recommendation systems, traceability of traders, compliance by design, etc.
“The enforcement action is based on a complaint filed by consumer organisations with the European Commission. Tem and Shain have until 12 July 2024 to provide the requested information,” it said in a statement.
Tem said he is cooperating with the committee.
“We want to reiterate that we are committed to complying with all applicable laws and regulations in the markets in which we operate,” the spokesperson said in an emailed statement.
Shane said he would continue to work closely with the committee.
“We have received a request for information from the European Commission and are working to respond as soon as possible,” the spokesman said.
Violation of the DSA can result in fines of up to 6% of a company’s worldwide turnover.
