EU questions Shein, Temu over consumer protection

The EU on Friday demanded wildly
popular shopping platforms Shein and Temu explain what action they are taking
to protect consumers, including children.

The query was made under the EU’s breakthrough law known as the Digital
Services Act (DSA) that forces platforms to do more to tackle the sale of
illegal and harmful goods.

The European Commission said it wants to know what action the
Chinese-founded platforms have taken to make sure users can notify them about
illegal products.

It also wants to know how Shein and Temu are complying with rules regarding
online interfaces to avoid “dark patterns”, the practice of tricking users
into making unwanted purchases or opting-in to certain settings without their
knowledge.

The commission added it wants more information about how they are
guaranteeing the transparency of their recommender systems — algorithms used
by platforms to push more personalised content — and the ease with which
sellers can be traced.

Both companies must provide the information by July 12.

Shein said it was “working to promptly address” the demand for information.

“We share the commission’s goal of ensuring that consumers in the EU can
shop online with peace of mind, and we will continue working closely with the
commission,” a Shein spokesperson said.

Temu said it was “cooperating fully” with the EU. “We’d also like to
reiterate that we are fully committed to complying with all applicable laws
and regulations in the markets where we operate,” a Temu spokesperson said.

The commission said its request for information was also based on a
complaint submitted by consumer organisations.

In May, Europe’s BEUC umbrella consumer rights group filed a complaint
against Temu with the European Commission, accusing the app of using
“manipulative techniques”.

Temu at the time said it was committed to complying with the rules.

Both platforms have a sizeable European user base.

Shein, a Chinese-founded company which is headquartered in Singapore, has
said it has around 108 million monthly active users in the 27-nation EU.

Temu only arrived in Europe last year and has said it has on average around
75 million monthly active users in the bloc.

Shein and Temu also recently joined fellow marketplaces AliExpress, Amazon
and Zalando on a list of 24 “very large online platforms” facing stricter
safety rules under the DSA, which have more than 45 million monthly active
users in the European Union.(AFP)