Temu and Shein must provide information on compliance with EU technology rules by July 12

Author: Foo Yun Chee

BRUSSELS (Reuters) – Chinese fast-fashion e-commerce retailer Temu and China-founded Shein have been ordered by EU regulators to provide detailed information by July 12 on how they comply with EU rules on online content following complaints filed by consumer organizations.

Both companies are subject to stricter requirements under the Digital Services Act, such as stepping up efforts to combat illegal and harmful content on their platforms after they were deemed very large online platforms due to their large number of users.

The European Commission said it had asked companies for information, asking how they allow users to notify it about illegal products and how they manage their online interfaces to prevent fraud and manipulation of users through so-called dark patterns.

She also wanted more details on how companies protect minors, the transparency of their recommendation systems, the ability to track traders and compliance by design.

“This enforcement action is also based on a complaint filed with the Commission by consumer organisations. Both Temu and Shein must provide the requested information by 12 July 2024,” the statement said.

It informed about cooperation with the Commission.

“We would also like to emphasize that we are fully committed to complying with all applicable laws and regulations in the markets in which we operate,” the spokesperson said in an email.

Shein said he would continue to cooperate closely with the Commission.

“We have received a request for information from the European Commission and are working to address it promptly,” the spokesman said.

Violation of the DSA may result in financial penalties of up to 6% of a company’s global turnover.

(Reporting by Foo Yun Chee; Editing by Jan Harvey)