The European Commission has launched a penalty procedure against the Chinese online retail giant Temu. Brussels suspects that the company, which sells inexpensive goods online, is violating the EU’s Digital Services Act. The allegations include the sale of counterfeit and potentially dangerous products, according to statements from the Commission on Thursday, October 31, Dw.com informs.

As part of the investigation, the design of Temu’s website will be carefully examined. Critics argue that the site is structured to foster consumer dependency and encourage unplanned purchases.

European Commission Vice President Margrethe Vestager has urged the Chinese company to ensure that its products meet EU standards and do not pose a risk to consumers. Germany’s Ministry of Economic Affairs, along with consumer protection associations, is also advocating for stricter measures against Temu and other online retailers, such as Shein, that sell low-cost goods.

Temu, for its part, has expressed willingness to cooperate with EU authorities, emphasizing that the company’s goal is to create “a safe and trustworthy marketplace for consumers.”

The Digital Services Act came into effect in the European Union in August 2023. It mandates that internet companies combat racism, drug sales, counterfeit products, child pornography, and disinformation. If a violation of the law is proven, the European Commission can impose a fine of up to 6 percent of the company’s global annual revenue.