The European Commission has preliminarily found Temu in breach of the Digital Services Act (DSA) for failing to properly assess and mitigate the risks of illegal products being sold on its marketplace. While most often associated with large online platforms (like Temu, Amazon, Shein), the DSA applies to all businesses selling online in the EU.
Mystery‑Shopping Data Reveals Real Consumer Risk
A mystery shopping investigation revealed that EU consumers are highly likely to encounter non-compliant or unsafe products on Temu, including baby toys and small electronics. The Commission found Temu’s risk assessment relied on generic industry data rather than marketplace-specific evidence, leading to inadequate mitigation measures.
If the breach is confirmed, Temu could face fines of up to 6% of its global turnover, be required to implement stronger controls, and potentially enter a period of enhanced supervision.
The case underscores the EU’s growing crackdown on unsafe and non-compliant products sold online. Challenges reflected in the DSA and also the General Product Safety Regulation (GPSR). Business operating in the EU must have robust systems in place for:
- Knowing exactly who is selling what.
- Ensuring goods meet EU safety and quality requirements.
- Clear reporting and removal mechanisms for non-compliant products.
DSA and GPSR in Focus
The Digital Services Act came into full effect in February 2024 and is designed to create a safer and more transparent online environment. While often discussed in the context of very large online platforms (VLOPs) like Temu, Amazon, Shein, it also impacts any retailers or brands using online platforms who must ensure that product data, safety documentation, and environmental claims are accurate, verifiable, and easy to access, or risk takedowns.
Key implications:
- “Know Your Business Customer” – marketplaces must verify the identity of all sellers; retailers must be prepared to provide detailed business and product compliance information.
- Marketplaces must have mechanisms for reporting illegal or unsafe products and retailers must cooperate quickly when products are flagged.
- Retailers must provide accurate, non-misleading product descriptions, images, and environmental claims.
Manipulative online design practices (such as hiding unsubscribe buttons or misleading checkout flows) are banned. - If retailers use recommendation systems or targeted advertising, they must meet transparency and user-choice obligations.
The General Product Safety Regulation, which came into force in December 2024, sets stricter safety and compliance requirements for any non-food consumer products sold in the EU regardless of whether they are manufactured in the EU or imported. Retailers need robust product compliance checks, supply chain transparency, and proactive recall/withdrawal procedures to meet GPSR obligations.
Key implications:
- Broader scope covers all consumer products, including those sold second-hand, refurbished, or via online channels.
- Retailers must ensure products meet essential safety requirements before they are made available to EU consumers.
- Products must have traceable supply chain information, including manufacturer/importer details.
- If a safety issue is discovered, retailers must remove products from sale and notify authorities and consumers.
- Products sold through online marketplaces must comply with the same safety requirements as offline goods.
How Jordisk can help
Jordisk supports retailers, brands, and online marketplaces by:
- Implementing product compliance systems to meet GPSR, DSA, and product-specific regulations.
- Design supplier and trader verification and traceability processes.
- Building product risk assessment frameworks.
- Setting up robust monitoring and reporting tools to detect and remove non-compliant products quickly.
- Integrating digital product passports and eco-design strategies to maintain compliance.
