Chinese fast-fashion e-commerce platforms Temu and Shein have been instructed by EU tech authorities to furnish details on their adherence to EU online content regulations by July 12, in response to grievances lodged by consumer organizations.
Both firms are now under stricter obligations as per the Digital Services Act, necessitating enhanced efforts to address illegal and detrimental content on their platforms, given their classification as Very Large Online Platforms due to their extensive user base.
The European Commission has issued information requests to these companies, inquiring about their mechanisms for users to report illegal products and their strategies to manage online interfaces to thwart user deception or manipulation through so-called dark patterns. Additionally, the Commission seeks further information on the protection of minors, the transparency of their recommendation algorithms, the traceability of merchants, and the integration of compliance measures.
This enforcement action stems from a complaint filed with the Commission by consumer groups. Temu and Shein are required to submit the requested information by July 12, 2024, as stated in the Commission's announcement. Penalties for violations under the DSA can reach up to 6% of a company's global revenue.
