Bryan Carroll’s Post

“The bigger they are, the harder they fall.” This might just be the case for Temu, the Chinese e-commerce powerhouse under investigation by the European Union (EU) for potential Digital Services Act (DSA) violations. What’s on the line? Potentially, a whopping 6% of Temu’s total global revenue could hit billions. This isn’t your average regulatory slap on the wrist. The EU is serious about enforcing the DSA, especially when it comes to major players like Temu. Why? Because safeguarding online marketplaces isn’t just a policy—it’s a priority. Here’s why the EU’s Temu investigation could signal a significant shift in the landscape for digital giants everywhere.

Chinese Online Retailer Temu Faces EU’s Highest Level of Digital Scrutiny Under New Regulations 👉 https://lnkd.in/eJZN6a_8 Temu plans to navigate stringent regulations for enhanced online safety and transparency. With over 45 million users, Temu joins the ranks of major tech platforms under the EU's strictest digital scrutiny. As it gears up to comply with the Digital Services Act, the Chinese online retailer emphasizes its commitment to user safety and regulatory compliance. #DSA #TechRegulation #Temu #EU #DigitalRegulation

The EU's Digital Services Act (DSA) designates Very Large Online Platforms (VLOPs) with stricter obligations and enhanced oversight. VLOPs must conduct risk assessments, implement risk mitigation measures, and provide transparency about algorithms and advertising practices. Failure to comply can result in fines up to 6% of global annual turnover. VLOPs are prohibited from using sensitive personal data for targeted advertising without explicit consent. They must also take measures to mitigate risks to electoral integrity. The designation is based on reaching 45 million monthly active users in the EU, and with Temu having more than 75M users in the EU, it's well within the scrutiny zone. #ecommerce #ecommercebusiness https://lnkd.in/ga7u7_RZ

The Digital Services Act (DSA) is indeed a significant regulation that is aimed at ensuring a safer and more transparent online environment for users within the European Union. It imposes new obligations and responsibilities on various digital service providers, including e-commerce platforms like Temu. Under the DSA, online platforms will be required to take measures to prevent the dissemination of illegal content, protect user rights and adhere to certain transparency requirements. This will have implications for how platforms like Temu operate, as they will need to ensure compliance with these new standards. #ecommerce #eu #global #cargosmart

Temu accused of breaching EU’s DSA As those of you that follow me know, I often debunk myths about Temu here on LinkedIn. That might give the impression that I'm a big supporter of the platform. But that's not the case, I just unlike unbiased criticism based on prejudices. There is a lot of things to really criticise Temu about. Most of the time though it's not being bashed for the right reasons ... At Tech Buzz China we have written four factual reports about Temu, all based on thorough research. In the latest one, which we published on Saturday, there's this interesting bit: "At TikTok, which has been much slower rolling out cross-border e-commerce, they concluded that Temu was able to quickly open the country because they ‘get on the bus first, buy the tickets later’. ‘Getting on the bus’ refers to setting up logistics, payment and other partners before entering a country. ‘Buying the ticket later’ refers to solving compliance issues while expanding the market." (full article: https://lnkd.in/ed7M6VM2) And that's one of the things that is truly wrong with Temu. In a statement it even "[described itself as a “newcomer” to the region and [said] it’s been taking feedback from customers, regulators and consumer groups; and also claiming to have been adjusting how it operates to align with local expectations." As such it is a good thing that consumer protection groups around the European Union are teaming up to force Temu to play by the rules. "The coordinated complaints allege the e-commerce giant is failing to meet a raft of DSA requirements, including trader traceability requirements; rules against manipulative design; and transparency around product recommender algorithms." (source: https://lnkd.in/ezmYYVhH) So, I'm very happy with this *factual* criticism. There is no reason why Temu should be allowed to use the same manipulative tricks that others like Booking have been forbidden to apply. And there is no reason why it should be allowed to import unsafe products while importers have to follow strict product safety rules. Let's hope it will force Temu to sell safe, quality products in a more transparent and ethical way. All that would be left to fix then would be our own unsustainable consumption behaviour.

🚨 **Urgent Consumer Alert: Temu Violates EU Digital Services Act** 🚨 It’s time to address serious concerns about the fast-growing online shopping app, Temu. Despite its popularity with over 75 million monthly users in the EU, Temu is failing to protect consumers and uphold critical EU regulations. These concerns are being observed in other countries as well, making it essential for those nations to implement measures that ensure fair trade and consumer protection. 🔍 **Key Issues highlighted from recent studies and complaints in EU:** - **Lack of Seller Traceability:** Temu does not provide sufficient information about traders on its platform, leaving consumers in the dark about who they are buying from and whether products meet EU safety standards. - **Manipulative Practices:** The platform employs dark patterns to push consumers into spending more and complicates account closures, violating transparency norms. - **Opaque Recommendations:** Temu does not clearly disclose how it recommends products, making it difficult for consumers to understand the criteria behind product suggestions. These practices not only undermine consumer trust but also breach the EU's Digital Services Act. Consumer groups from the BEUC network have filed complaints with both the European Commission and national authorities, demanding immediate action. 🛡️ **Action Needed:** Authorities must investigate and enforce compliance to protect European consumers. All products sold in the region, regardless of the marketplace's origin, must adhere to stringent safety and transparency standards. 🌐 **Emerging Non-Compliance Concerns:** Temu is part of a broader trend of Chinese e-commerce chains rapidly gaining market share while often flouting local regulations. This creates unfair competition for key market players who diligently follow EU rules, compromising both consumer safety and market integrity. Monique Goyens, Director General at BEUC, states: "Temu's practices are not just irresponsible, they are illegal. Consumers deserve transparency and safety, and Temu must be held accountable under the Digital Services Act. Additionally, it's crucial to address how such non-compliance creates an uneven playing field, disadvantaging companies that adhere to regulations." 🔗 [Learn more about our actions and how you can stay safe](https://www.beuc.eu) --- Feel free to share this post to spread awareness and support consumer rights! #ConsumerProtection #DigitalServicesAct #EUCompliance #Temu #FairCompetition #saso #moiat #esma #sfda #KSA #UAE #retail #middleeastretail

📣 Temu is a hugely popular online marketplace which is taking the EU by storm, with over 75 millions monthly users according to the platform’s published results in 2024. However, we believe that it is also failing to protect consumers by breaching the EU’s Digital Services Act, an important, recent EU law which sets requirements and obligations for online marketplaces Together, several consumer organisations across Europe have filed complaints with their national authorities in charge of enforcing the DSA to ensure that Temu complies with its obligations and offer a safe place for all European consumers. With support from: Testachats / Testaankoop, dTest, o.p.s., BNAAC, Forbrugerrådet Tænk, Forbrukerrådet/Norwegian Consumer Council Arbeiterkammer Österreich Kuluttajaliitto ry | Konsumentförbundet rf | The Consumers' Union of Finland UFC-Que Choisir EKPIZO KEPKA Altroconsumo Consumentenbond Federacja Konsumentow SOS Poprad, CECU, OCU, Sveriges Konsumenter, Union Luxembourgeoise des Consommateurs (ULC), ASUFIN, Which?, BEUC - The European Consumer Organisation 🔔 More info : https://lnkd.in/ePt-VbGP

#Temu Faces EU Scrutiny Over Illegal Sales Allegations E-commerce giant Temu is under the microscope as the European Union launches an investigation into its handling of illegal product sales. The probe, driven by concerns over Temu's adherence to the EU's Digital Services Act, could result in fines up to 6% of its annual revenue if violations are confirmed. #Temu #ECommerce #DigitalServicesAct #Saasverse The EU is assessing Temu's transparency, data practices, and potential addictive features to engage users. This comes amid allegations that the platform allows the sale of illegal and potentially dangerous products. In response, Temu has expressed its commitment to cooperate with regulators and is in talks to join a voluntary agreement against counterfeit sales. As part of a broader regulatory crackdown, other tech giants like Meta, Alibaba, and TikTok are also facing similar EU investigations. With Temu's rapid growth, highlighted by its "Shop Like a Billionaire" campaign, how will this investigation impact its market presence? #Regulation #TechIndustry #ConsumerSafety What measures should e-commerce platforms implement to ensure compliance and consumer safety?

💥 Google’s Algorithm Shake-Up: Are European Retailers at Risk?💥 1. 🌍 Impact on Revenue: European retailers fear Google’s search changes will favor large intermediaries, reducing direct sales revenues. 2. 🛍️ Aggregators Advantage: The new algorithm is expected to give online aggregators more prominence, affecting visibility for individual businesses. 3. 📨 Industry Pushback: Groups have written to EU regulators, urging them to consider the impact on smaller businesses. 4. ⚖️ Regulatory Focus: Google aims to comply with the EU’s Digital Markets Act while maintaining service quality. 5. 🔄 Algorithm Adjustments: Google’s changes follow a history of compliance issues, including a €2.42 billion antitrust fine. https://lnkd.in/eyGgrJ8v

The Digital Services Act (DSA) is indeed a significant regulation that is aimed at ensuring a safer and more transparent online environment for users within the European Union. It imposes new obligations and responsibilities on various digital service providers, including e-commerce platforms like Temu. Under the DSA, online platforms will be required to take measures to prevent the dissemination of illegal content, protect user rights, and adhere to certain transparency requirements. This will have implications for how platforms like Temu operate, as they will need to ensure compliance with these new standards. #ecommerce#euro#global#cargosmart