By 
01-11-2024
Fanni Lovas
South East Asia Researcher,
Global Human Rights Defence.
Temu is rapidly transforming the global e-commerce landscape by offering consumers an extensive selection of products. However, questions have arisen regarding its compliance with regulatory standards and the implications for consumer safety in international markets.
Temu, a fast-growing e-commercial platform owned by China’s Pinduoduo Inc., ships products directly from China to customers worldwide. With over 92 million users in the European Union, it has been placed under the oversight of Digital Service Act (DSA) due to allegations of failing to control the sale of illegal items. The European Union seeks to ensure that foreign retailers adhere to its safety and transparency requirements for online marketplaces.
Under international trade laws, China is required to comply with specific standards that ensure the safety and quality of products sold within the European Union. As a member of the World Trade Organisation, China is obligated to adhere to the Technical Barriers to Trade Agreement, which mandates member countries to enforce regulations, thereby protecting consumer health and safety. Consequently, products that are sold through platforms like Temu should meet these international safety standards, including quality control, toxicity levels, and labelling requirements. The European Unions’ investigation suggests potential lapses with safety standards, raising concerns that unsafe or non-compliant products may reach European consumers, thereby highlighting possible violations of China’s international obligations. Additionally, the pending EU-China Comprehensive Agreement on Investment (CAI) emphasises the need for adherence to EU product safety standards. Although this agreement has not been ratified, the CAI aims to strengthen trade relations by ensuring mutual respect for regulatory standards, further requiring China to meet EU safety regulations.
Temu’s rapid growth as an e-commerce platform has attracted significant attention in the European Union. Its placement under scrutiny by the DSA raises serious concerns about the sale of illegal items. The EU’s investigation reveals potential lapses in compliance with safety regulations, emphasising the importance of ensuring that products meet established safety and quality standards. The pending EU-China CAU reinforces the necessity for adherence to product safety standards, ultimately aiming to protect consumers effectively.
Sources and further reading:
(2024, November 2). China online retailer Temu faces EU probe. The Manila Times.https://www.manilatimes.net/2024/11/02/business/foreign-business/china-online-retailer-temu-faces-eu-probe/1995993. Accessed 21 November 2024.
(2024, October 31). Temu to be investigates by EU tech regulators over sale of illegal products. Reuters.https://www.reuters.com/business/retail-consumer/temu-be-investigated-by-eu-tech-regulators-over-sale-illegal-products-2024-10-31/. Accessed 21 November 2024.
(2024, May 31). Commission designates Temu as Very Large Online Platform under the Digital Services Act. European Commission. https://digital-strategy.ec.europa.eu/en/news/commission-designates-temu-very-large-online-platform-under-digital-services-act#:~:text=The%20Commission%20has%20formally%20designated%20Temu%20as%20a,45%20million%20monthly%20users%20in%20the%20European%20Union. Accessed 21 November 2024.
(2021, April). Technical Barriers to Trade Agreement. WTO Library. https://www.wto-ilibrary.org/content/books/9789287052711. Accessed 21 November 2024.
(2024, May 21). China: EU trade relations with China. Facts, figures and latest developments. European Commission. https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/china_en. Accessed 21 November 2024.
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