DSA: How Does the European Commission's Investigation Into Temu Affect the Safety of Products Sold Online?

The Digital Services Act (DSA) marks a major step forward in the regulation of digital platforms, providing a legislative framework to ensure product safety and consumer protection within the European Union. The recent opening of an investigation by the European Commission against Temu, a very large online platform, highlights the critical issues surrounding the compliance of digital services and the fight against the sale of illegal products. This situation underscores the growing importance of the obligations imposed by the DSA to ensure fair and safe commercial practices in the digital market, particularly in light of the systemic risks posed by online commerce operators. As the investigation unfolds, the implications of this action could redefine the safety standards for products sold online and prompt other platforms to reconsider their commercial practices.

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1. Temu's Failures to Comply With Product Safety Standards

With the entry into force of the DSA, it is essential to understand the obligations that the status of very large online platform (VLOP) entails for Temu. This classification, which stems from the European Commission's recognition that a threshold of active users has been reached, imposes on Temu a series of stringent responsibilities regarding product safety.

Indeed, the platform is not merely a marketplace; it is also responsible for the compliance of the items offered for sale, in particular those accessible to especially vulnerable consumers such as children. The European Commission's investigation highlights several instances of non-compliance by Temu. According to the French Federation of the Toy and Childcare Industries (FJP), an alarming proportion of 95% of the products marketed through Temu are said to be non-compliant with the safety standards in force in the European Union. The concerns raised regarding these products include heightened risks of choking and contact with harmful substances, which calls for a thorough assessment of the due diligence procedures put in place by the platform. The need to review the traceability of the products sold on Temu is equally pressing, especially in a context where the sale of illegal products is on the rise.

In light of these findings, the European Commission is undertaking an in-depth investigation to examine how Temu manages compliance. This investigative process will seek to assess whether the measures implemented to prevent the sale of dangerous and non-compliant products are sufficient and genuinely meet the standards imposed by the DSA. Indeed, the user-friendliness of a digital market depends directly on the ability of platforms to regulate the content and products they make available to consumers. Temu's response to this investigation and the potential implementation of changes may well prove decisive in strengthening the legal framework surrounding the safety of products available online.

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2. How Does Temu Address the Risks Associated With the Addictive Design of Its Services?

Within the framework of the investigation conducted by the European Commission, it is essential to explore how Temu manages the potential risks associated with the addictive design of its services. As a very large online platform (VLOP), Temu must not only comply with product safety standards, but must also take into account the impact of the user experience on consumer well-being. This includes scrutinising the reward systems and design paradigms that could encourage excessive or compulsive use of the platform. Indeed, the addictive design of digital services can lead to harmful behaviour, particularly among young users.

The European Commission thus highlights the importance of closely analysing how the recommendation and incentive programmes put in place by Temu operate. Under Article 34 of the DSA, the regulation requires platforms such as Temu to take adequate measures to mitigate the risks associated with such addictive behaviour. The platform is therefore placed under an obligation to review its user engagement strategies, in order to ensure that they do not compromise consumers' psychological and physical safety. In parallel, earlier cases, such as the investigation opened against TikTok, underline the need to monitor the effects of such addictive designs. TikTok was required to remove features deemed too addictive, and this decision could serve as a model for the expectations placed on Temu. The challenge for the platform therefore lies in striking the right balance between optimising the user experience and complying with the regulatory expectations of the DSA.

Thus, the Commission is striving to ensure that Temu adopts ethical principles in the design of its services. This entails not only adapting to the regulations in force, but also proactively reflecting on the issues of digital dependency that could arise from the practices of selling and promoting products. The remainder of this investigation will determine whether Temu is able to address these critical concerns, and whether it will make significant changes to the way it engages its users.

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3. Why Is Access to Data for Researchers Important in the Regulation of Online Platforms?

The European Commission's ongoing investigation concerning Temu raises fundamental questions about access to data and its role in the regulation of online platforms. Transparency and openness of publicly accessible data are crucial principles for ensuring that platforms such as Temu comply with safety standards and protect consumers. Under Article 40 of the DSA, very large platforms are required to facilitate access to their data for vetted researchers. This legislative framework aims to enable an independent assessment of the systemic risks associated with these digital services. The importance of this access to data is twofold.

On the one hand, it allows researchers to better understand the dynamics and implications of online selling in the market. The data collected can serve as a basis for studies aimed at identifying the potential dangers of certain products, in particular those regarded as illegal or non-compliant. On the other hand, this approach helps strengthen the accountability of platforms in protecting consumers. Indeed, when researchers have access to information concerning the products sold on platforms such as Temu, this creates additional pressure for the latter to adopt more rigorous due diligence and safety practices. However, the process is not without its challenges. Temu must navigate between the transparency requirements of the DSA and the protection of its trade secrets, thereby giving rise to debates on how to go beyond mere compliance. By requiring that data be made available to researchers, the European Commission ensures that potential harms linked to the addictive design of certain recommendation systems can be analysed, thus enabling a more informed and, ultimately, more effective regulatory framework.

Moreover, this openness constitutes a significant step towards more robust regulation of online commerce platforms, which are often criticised for their lack of accountability for the products they offer. As the investigation continues, the way in which Temu responds to this requirement for data access and transparency will have repercussions for future regulations and for consumers' perception of the safety of products sold online.