feared continues to be a target in the European Union.

The EU Consumer Protection Cooperation Network (CPC) on Thursday notified the e-commerce platform that it had breached EU consumer laws following an investigation into the company’s practices.

More from Sourcing Journal

The watchdog claimed that Temu’s business model promotes practices that “may mislead consumers or unduly influence their purchasing decisions”.

The accusations come just days after the European Commission announced that it had launched an official investigation in Temu for possible violations of the EU Law on Digital Services (DSA), under which the discount goods supplier must comply with the strictest rules due to its status as a Very Large Online Supplier (WHIP). That investigation centers around the company’s potential sale of illegal goods as well as its alleged “addictive design.” According to the CPC Network, its findings complement the launch of the investigation into DSA.

This time, Temu was accused of violating consumer laws. According to the Commission, Temu’s “problematic practices” include false discounts, forced gamification, missing and misleading information, fake reviews and more.

CPC Network found that Temu’s mechanisms to prevent fake reviews do not go far enough; said it uses “false claims of limited supplies or false purchase deadlines” to persuade consumers to buy items; claimed to give consumers the illusion of a discount when no such offer exists; noted that they are misleading consumers with “incomplete and incorrect information” about their rights regarding returns and refunds and more.

According to CPC Network, it will continue to evaluate Temu’s compliance with disclosure obligations.

Věra Jourová, Vice President for Values ​​and Transparency, said the EU Commission will continue to pursue actions to protect consumers, regardless of the size or scope of the company in question.

“Ensuring the safety of EU consumers is a priority for the Commission. Therefore, commercial companies’ compliance with our consumer protection standards is non-negotiable. The commitment and coordinated efforts of national authorities play a vital role in ensuring a fair and safe market for everyone. We have today shared our concerns with Temu and urge Temu to promptly bring its practices into full compliance with EU consumer protection rules,” Jourová said in a statement.

As a result of the alleged breaches of EU law, Temu will be required to submit more information to relevant consumer protection regulators and come up with a plan to remedy the problems with consumer protection laws. It must do so within the next month, and if it fails to adequately address the Commission’s concerns, it could face fines and other forms of forced compliance from the bloc or its member states.

A company spokesman said Temu “acknowledges the concerns raised by the European Commission and national consumer protection authorities” and intends to work with the Commission on Compliance.

“Although we have gained popularity with many consumers in a relatively short time, we are still a very young platform – less than two years in the EU – and we are actively learning and adapting to local requirements. We will fully cooperate with this investigation as we believe such scrutiny benefits consumers, merchants and the platform in the long term,” the spokesperson said.

The findings of this investigation – and the ongoing investigation into Temu’s DSA compliance – are not the only regulatory scrutiny the company is currently facing. It was recently banned by the Indonesian government, which cited threats to both consumers and local business owners, and Germany was considering the new laws this would impact both Temu and his competitor, Shein.

At the same time, US regulators have puts both companies on the hot seatasking questions about their business practices and import policies. As President Joe Biden’s term draws to a close, those close to him have noted that he plans to take US de minimis relief measureswhich Shein and Temu use to ship items to the US without tariffs or screening. Germany thought to do the same, and other countries such as South Africathey have already adopted the change.