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

BRUSSELS (Reuters) – Chinese online clothing retailer Temu and China-founded Shein have been ordered by European Union technology regulators to provide details by July 12 on how they comply with EU rules on online content, following complaints by consumer groups.

Both companies are subject to stricter requirements under the Digital Services Act, including stepping up efforts to combat illegal and harmful content on their platforms after they were designated as very large internet 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 the companies protect minors, the transparency of their recommendation systems, merchant traceability and compliance by design.

‘This enforcement action is also based on a complaint submitted to the Commission by consumer organizations. Both Temu and Shein must provide the requested information by July 12, 2024.” – said the statement.

This informed about the 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 did not comment on the matter initially.

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