Shein and Temu have only recently been confirmed as subject to centralized enforcement of the strictest layer of the European Union’s digital services regulation, the Digital Services Act (DSA). On Friday, the Commission announced that it has sent a bunch of requests for information (RFI) to both platforms regarding their compliance with various requirements of the law.
The Digital Services Act: A New Era in Online Regulation
The DSA is the bloc’s recently rebooted online rulebook, which aims to raise standards on digital services including marketplaces. Lawmakers tout the regime as a tool to shrink consumer risks in areas like the sale of illegal or dangerous goods.
Both Shein and Temu have been subject to the regime’s general rules since mid-February but were recently designated as so-called very large online platforms (VLOPs) under the DSA in April and May, respectively. This designation further amps up their regulatory risk as Commission enforcers can now take a more direct approach.
The Requests for Information: What Does It Mean?
The EU has given Shein and Temu until July 12 to provide the requested information, which will be used to assess next steps. These next steps could entail the formal opening of proceedings if the Commission suspects any infringements of the rules. This development marks a significant shift in how these two e-commerce giants operate within the EU.
Response from Shein and Temu
When reached for comment on the Commission’s RFIs, both companies expressed their commitment to complying with all applicable laws and regulations. Shein emphasized its goal of ensuring that consumers in the EU can shop online with peace of mind, while Temu reiterated its dedication to cooperating fully with the EU.
The Importance of Compliance
The EU’s move highlights the importance of compliance for digital platforms operating within the bloc. As the regulatory landscape continues to evolve, it’s essential for these companies to demonstrate their commitment to transparency and adherence to rules designed to protect consumers.
Conclusion
Shein and Temu face a crucial moment in their relationship with the European Union as they navigate the implications of being designated as very large online platforms under the Digital Services Act. The Commission’s move underscores its dedication to enforcing regulations that safeguard consumer interests, setting a precedent for future actions against other non-compliant digital entities.
Related Topics
- Digital Services Act: A comprehensive overview of the DSA and its impact on e-commerce.
- Shein and Temu: Insights into these two e-commerce giants’ operations within the EU.
- Regulatory Compliance: The importance of compliance for digital platforms operating within the EU.
Sources
- "Digital Services Act: A New Era in Online Regulation"
- "Shein and Temu Face EU’s Digital Services Act Enforcement"
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