Reported 12 months ago
Chinese cross-border e-commerce unicorns Temu and SHEIN, popular in the US and Europe, are targeted by the EU's Digital Services Act, mandating them to provide specific information by July 12 this year on how they comply with regulations, including minor protection, transparency of recommendation systems, merchant tracking, and adherence to design rules. Failure could result in a fine of 6% of global revenue. Both companies are facing stricter regulatory policies under the EU law. The EU Commission demanded information following complaints from consumer organizations, with both firms required to explain user pathways to report illegal products and ensure users are not deceived or manipulated by dark patterns. Temu stated it will cooperate with the EU Commission, emphasizing commitment to compliance with all market regulations, while SHEIN noted it has already begun addressing the issues and vowed to collaborate closely with the Commission.
Source: YAHOO