Title: European Commission Requests Information from Chinese E-Retailers on Content Moderation Compliance
Introduction:
The European Commission has requested that Chinese online retailers, Temu and Shein, provide details on how they meet the content moderation obligations outlined in the Digital Services Act (DSA). This request comes after BEUC, an organization representing consumer groups across Europe, lodged a complaint against Temu, accusing the company of various violations. The Commission’s investigation could lead to fines or further actions against these platforms.
1. The European Commission’s Request for Information:
The European Commission has sent formal requests to Temu and Shein, asking for details on how they protect minors and ensure their online interfaces do not deceive or manipulate users. The Commission will assess the information provided by the companies and decide on further actions, potentially leading to a formal investigation. Violations of DSA can result in fines up to 6 percent of their global turnover.
2. BEUC’s Complaint Against Temu:
BEUC accused Temu of failing to meet multiple rules under the DSA in a report released in May. The report highlighted the platform’s lack of transparency in providing consumers with necessary information about traders and product standards. It also raised concerns about manipulative techniques employed by Temu, such as “dark patterns,” which steer consumers towards unintended decisions. The report further questioned the transparency of Temu’s product recommendations and the design of its algorithms.
3. Concerns over Minors’ Protection:
BEUC’s complaint also emphasized the insufficient protection provided by Temu to minors. The platform’s game features and low prices were identified as factors that could attract users under 18. BEUC stated that Temu did not guarantee a safe and trustworthy online environment as required by law.
4. Shein’s Response and Compliance Efforts:
Shein confirmed receiving the Commission’s request for information and expressed its commitment to addressing it promptly. The company shared the Commission’s goal of ensuring consumer confidence in online shopping and vowed to work closely with the Commission to comply with the DSA. Shein, a fast-fashion giant that relocated its headquarters to Singapore, has been designated as a very large online platform by the EU executive.
5. Temu’s Background and Controversies:
Temu, a Western offshoot of Pingduoduo, gained significant growth in the European market by selling low-cost products made mostly in China. However, the company has faced criticism both in Europe and the United States. In addition to the content moderation concerns raised by BEUC, Temu has been accused of using forced labor in its cotton supply chains in China, which the company denies. It has also faced legal action in the United States for alleged privacy law violations and deceptive trade practices.
Conclusion:
The European Commission’s request for information from Temu and Shein reflects its commitment to ensuring content moderation compliance under the Digital Services Act. BEUC’s complaint against Temu highlighted multiple violations, including lack of transparency and inadequate protection for minors. These investigations and actions seek to protect consumers and maintain trust in online platforms. Both companies have expressed their willingness to cooperate and comply with applicable laws and regulations.
