In the world of e-commerce, two major players, Temu and Shein, are currently under scrutiny by the European Commission. With only ten days left to provide detailed information on various aspects of their services to European shoppers, these Very Large Online Platforms (VLOPs) are facing pressure to adhere to the strict rules outlined in the Digital Services Act. This action comes in response to complaints from consumer organizations, prompting the European Commission to request a thorough review of their operations.
Added to the VLOP list this spring, alongside giants like Amazon and Zalando, Temu and Shein must demonstrate their commitment to tackling illegal and harmful content on their platforms. The EU tech regulators are particularly interested in their efforts to facilitate user reports of illegal products, prevent dark patterns, protect minors, ensure transparency in recommender systems, traceability of traders, and compliance by design.
Both companies have until July 12 to provide the requested information. Failure to do so accurately and comprehensively could result in fines and more severe penalties imposed by the European Commission. This heightened scrutiny reflects the increasing skepticism surrounding the compliance of Chinese marketplaces like Temu and Shein with European regulations.
Skepticism and Calls for Regulation
Despite the growing popularity of Temu and Shein in Europe, consumer and interest organizations are raising concerns about their adherence to regulations. With a significant percentage of the population already engaging with these platforms, there is a pressing need for better enforcement of existing rules to ensure a level playing field for all e-commerce players.
Conclusion
The spotlight is on Temu and Shein as they navigate the demands of the European Commission and strive to maintain their presence in the competitive e-commerce landscape. The outcome of this scrutiny will not only impact these VLOPs but also set a precedent for how online platforms operate within the European market. It is a critical moment for these companies to demonstrate their commitment to compliance and accountability in serving European consumers.