Commission fines Temu €200M for breaching the Digital Services Act
70 points
3 hours ago
| 7 comments
| ec.europa.eu
| HN
big85
2 hours ago
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> Evidence from a mystery shopping exercise included in the Commission's investigation shows that a very high percentage of the selected chargers failed basic safety tests, while a high percentage of tested baby toys posed safety risks of medium to high severity, as they contain chemicals exceeding legal safety limits or pose suffocation hazards due to detachable parts.

> Under the DSA, designated Very Large Online Platforms are required to diligently assess systemic risks linked to their services and adopt corresponding mitigation measures.

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pjc50
2 hours ago
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Interesting that this is under the DSA, since if they're the "importer" by mailing parcels to the EU it would also be covered by long standing rules on CE marking.

It's good to know that someone's actually checking this stuff. Self-reported compliance like CE always makes me wonder if I'm a mug for trying to comply honestly with the rules when it would be easy not to.

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TheJoeMan
1 hour ago
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I'd be curious to see a breakdown between the "toxic chemicals" and "suffocation hazards" categories, as my intuition says it's mostly the latter and often bunk. The other day I was watching the TV above the Walmart customer service desk that displays product recalls, and multiple recalled products were a motorized bassinet, but the wireless remote control has a battery compartment that could be opened and then the battery swallowed. To a layman or (I assume) Chinese inventor, that seems overly burdensome as I am certain that same household would have other wireless remotes.
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HPsquared
39 minutes ago
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Batteries are more than a choking hazard; they can cause severe internal chemical burns, gut perforation and so on initiated by electrolysis.
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super256
48 minutes ago
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Not a breakdown, but this comment reminded me of a recent play sand test by Stiftung Warentest:

They tested play sand for asbestos, and four of these positive tested play sands were ordered on Temu. The play sand is for kids!

https://www.test.de/Deko-Spiel-und-Bastelsand-Asbest-Alarm-i...

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throwa356262
2 hours ago
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Is temu much worse than amazon here?
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embedding-shape
2 hours ago
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Probably yeah, Amazon already had long exposure to the regulations from EU and European countries, they surely have some won lessons from these years, compared to Temu which is relatively new and might still be learning how things work, apparently. Temu is what, 3-4 years old or something?
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bonzini
1 hour ago
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"compared to Temu that does not give a damn by design" would be more accurate.
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embedding-shape
56 minutes ago
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I mean the same goes for most US companies, every time they first arrive in Europe they stumble around breaking laws and what not until they get fined to act properly, happened a bunch of times before, most famous examples being Uber and AirBnb, but Amazon been in trouble for the same thing in the past too.
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psychoslave
15 minutes ago
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Isn’t Temu basically Aliexpress with some "new shiny" frontend?

Not sure there is anything one couldn’t find on Amazon the exact same wares, though with the additional margin for a USA bigtech company in the middle.

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AndrewDucker
1 hour ago
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Certainly in the UK, we don't have the same issues with terrible Chinese fakes that I hear about from US Amazon users.
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maccard
1 hour ago
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We don’t have the fakes problem but Amazon in the UK has a growing amount of stuff that is just resale of stuff from temu. I suspect if you tested the top 10 chargers on Amazon that weren’t anker, you’d find the same problems.
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noir_lord
28 minutes ago
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One of the many reasons (up to and including US foreign policy) I don't buy from Amazon any more.

I'd sooner give Argos the money, they aren't that much more expensive (if at all) for the common set of things they sell and I can walk and pick it up same day.

They broke the first rule of e-commerce - "Don't make the customer think".

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everfrustrated
17 minutes ago
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One of the best usb chargers for the money is the 40W IKEA charger. I trust their quality control.
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philipwhiuk
1 hour ago
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Amazon UK these days is definitely full of Chinese reproductions and drop shipped knock offs.

Whether they're dangerous I don't know, I've not tried them.

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Hamuko
1 hour ago
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I don’t know about fakes, but browsing Amazon DE feels like browsing AliExpress when looking for any technology products. Especially cables, adapters and such.
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HPsquared
2 hours ago
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There's a lot of work to be done.
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ThePowerOfFuet
54 minutes ago
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Yes.
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jp3141
2 hours ago
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penr0se
1 hour ago
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Thank you
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humanpotato
2 hours ago
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spwa4
1 hour ago
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So they let sellers from china, and reseller platforms, get away with violating safety laws for 3 years (just Temu), have 50 BILLION euro in revenue (about 3-4 billion in profit for the platform itself) from those products and then charge them 200 Million for the crime?

Can European companies demand equal treatment? Wait, no, I know the answer to that.

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crote
25 minutes ago
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Yes, because it is the start of enforcement. That's how it works, not just a one-and-done slap on the wrist.

If they don't fix it, it'll eventually continue to the "20% of worldwide revenue" kind of fine everyone on HN was so afraid of when the GDPR was introduced. But that's not what it starts with.

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sunshine-o
17 minutes ago
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Yes, but who is fining the commision?

The best way to fight Temu would be to maintain a society where young people are not so desperate that the only comfort they can afford is to order the cheapest crap online.

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gib444
2 hours ago
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> Temu has until 28 August 2026 to submit an action plan to the Commission, as required by Article 75 of the DSA. The plan must set out measures to remedy the breach of its risk-assessment obligations. The European Board for Digital Services will have one month from receipt of the plan to issue its opinion. The Commission will then have a further month to adopt its final decision and set a reasonable period for implementation.

> Failure to comply with the non-compliance decision may lead to periodic penalty payments.

So they're just threatening a fine at this stage? It's not clear to me

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purerandomness
2 hours ago
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Since this is under the "Next Steps" section, it's pretty clear to me that the €200M fine is a fixed one-time fine that was issued now, but further, repeated fines ("periodic") will be issued if the hazard is not removed.
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nolok
2 hours ago
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No, it's a fine, but the fine doesn't absolve you from fixing it too so it stops. You have this delay to submit a plan for how and on what timeline you will fix it. If you don't do it, or take too long, we will keep fining you, increasingly.

An exemple what how in the old microsoft case they ended up puttin a daily fine for non compliance until microsoft balked back and fixed it (after they tried to act tough and pretended to ignore them).

The end goal ultimately is to get it fixed.

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bcjdjsndon
2 hours ago
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How do they enforce a fine on a Chinese company? What if temu says "up yours"?
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robin_reala
1 hour ago
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I visited Temu from Sweden and clicked on the terms of use, this is the first line:

1.1 These Terms are between you and Whaleco Technology Limited, an Irish company.

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mdrzn
1 hour ago
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you won't be able to sell in the EU market anymore
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dylan604
1 hour ago
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Doesn’t Temu direct ship to the customer? What if they ship in plain unmarked packaging and keep changing the address of the sender? Is the EU customs peeps just going to start inspecting every single package from China looking for items from Temu? That sounds like a logistical nightmare. This sounds like old school thinking where you can stop whole containers full of stuff from a single supplier.
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triceratops
46 minutes ago
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Smuggling isn't a great business model for legitimate companies.
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bonzini
1 hour ago
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The money has to move from the EU to Temu/Pinduoduo coffers at some point.
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bcjdjsndon
1 hour ago
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Say they carry on.... How does EU actually stop people ordering from their website and getting items posted to their house?
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Mashimo
1 hour ago
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Maybe going for the money. Forbit EU banks from transferring funds to known Temu accounts.
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askl
1 hour ago
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Ordering ISPs to DNS block temu would probably be easier and effective enough.

Or maybe getting google and apple to make the app not available in the EU.

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seydor
1 hour ago
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I've been buying everything i can think of from temu for a year now , in anticipation of it surely being outlawed in the EU. That time has come.
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jonkoops
1 hour ago
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Well, enjoy your plastic toys and clothes that are full of known carcinogens I guess.
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nutjob2
1 hour ago
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It's not being outlawed but made more expensive via a 3 euro fee attached to every item purchased.
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