Shein, Temu and other major online commerce platforms will have to comply with the DSA by stopping selling counterfeits, dangerous items or harmful to health, under penalty of heavy fines.
With an ultra-aggressive marketing policy and unbeatable prices, the Chinese giants Shein and Temu have firmly established themselves on the European market, particularly in the fast fashion sector. However, despite their overwhelming success, the two e-commerce platforms attract strong criticism not only on a competitive level, but also because of their encouragement of overconsumption. They push consumers to buy low-cost products that they do not necessarily need, which are often of poor quality and therefore need to be replaced regularly. Suffice it to say that the ecological impact is catastrophic… And that’s without taking into account the deplorable working conditions of the employees – the Uyghur people are unfortunately paying the price!
But Shein and Temu are not safe for European consumers. The two e-commerce platforms do not hesitate to sell counterfeits, dangerous or harmful to health items, ignoring European regulations. But not for long ! With, on the European market, more than 100 million customers for Shein and 75 million monthly active users for Temu, Chinese companies are now part of VLOPs (for Very Large Online Platforms) and will have to comply with the DSA (Digital Services Act) under penalty of heavy fines.
Temu and Shein: dangerous products on sale
As reported 60 Million consumers, Shein tends to incorporate substances dangerous to the health of its customers in the clothing it sells. The Belgian consumer association Test-Achats carried out tests, and it emerged that ten of the twenty-five children’s clothing and shoes purchased on the platform contain substances such as endocrine disruptors, allergens, irritants, etc. Worse, the concentrations were well beyond the levels authorized by European legislation. “In a pair of children’s shoes, we found harmful substances that far exceeded the authorized quantity: five times too much lead and hundreds of times too many phthalates”underlines Julie Frère, spokesperson for the association.
Same story on Temu’s side. According to a damning study published last February, more than nine out of ten toys sold on the platform do not comply with European safety rules. Poisoning, choking, cutting… The products present significant risks to children’s health (see our article). In addition, seventeen associations filed a complaint last May against the Chinese giant, accusing it of manipulating its customers and not respecting the DSA.
Dangerous products on Temu and Shein: the noose is tightening
This status will result in new consumer protection obligations. Thus, Shein will have to tell the authorities precisely what it intends to do to remove illegal items and change its algorithms in order to prevent the promotion and sale of prohibited items. “Annual risk assessment reports prepared by Shein must specifically assess any potential adverse effects on consumer health and safety, with a focus on the physical and mental well-being of underage users”, specifies the European Commission. The platform will therefore have to put in place a system to verify the age of its customers in order to restrict the purchase of items to the youngest.
The same goes for Temu, who will have to put in place “reduction measures” to limit the risks of selling counterfeits, dangerous products or products that do not comply with European standards – there will be work! This will include the rapid removal of illegal articles, the improvement of moderation processes and the refinement of algorithms to limit their promotion. The platform will also need to strengthen its internal processes, resources, testing, documentation and supervision of all activities related to the detection of systemic risks, and ensure transparency through external audits and reporting.
In the event of an infringement, Shein and Temu risk a fine of up to 6% of their global turnover and, in the event of a repeat offense, a ban in the European area. With Shein and Temu, there are now twenty-four online platforms that will have to respect the obligations of the DSA, including the giants Amazon, AliExpress, Booking.com and Zalando. Note that AliExpress is under formal investigation by the European Commission, regarding the sale of illegal products, and more particularly fake medicines (see our article).