The Commission is requesting Temu and Shein to provide more information on the measures they have taken to comply with the DSA obligations related to the so-called ‘Notice and Action mechanism’ (which allow users to notify illegal products), the online interfaces (which should be designed in a way that does not deceive or manipulate users via so called ‘dark patterns’), the protection of minors, the transparency of recommender systems, the traceability of traders and compliance by design.
This enforcement action is also based on a complaint submitted to the Commission by consumer organisations.
Both Temu and Shein must provide the requested information by 12 July 2024. Based on the assessment of the replies, the Commission will assess next steps. This could entail the formal opening of proceedings pursuant to Article 66 of the DSA.
Pursuant to Article 74 (2) of the DSA, the Commission can impose fines for incorrect, incomplete, or misleading information in response to a request for information. In case of failure to reply, the Commission may decide to request the information by decision. In this case, failure to reply by the deadline could lead to the imposition of periodic penalty payments.
Following their designation as Very Large Online Platforms, Temu and Shein are subject to the supervision of the Commission, including for the general obligations of the DSA, which entered into force on 17 February 2024 and are subject to the request for information sent today. Temu and Shein also continue to be supervised in respect of their general obligations under the DSA by the Coimsiún na Meán and the Competition and Consumer Protection Commission as the competent authorities of in Ireland. Temu and Shein have four months from the designation to comply with the more stringent rules under the DSA, notably the obligation to duly assess and mitigate any systemic risks stemming from their services, such as the dissemination of unsafe and counterfeited products.