Whaleco Technology Limited – the retail giant that does business as Temu – is the latest company to be designated as a Very Large Online Platform (“VLOP”) under the Digital Services Act (“DSA”), a European Union law that aims to counter the sale of illegal products and services on online marketplaces and combat illegal and harmful content on and practices by online platforms. The European Commission said on Friday that the online marketplace has an average of more than 45M monthly users in the EU, a number that Temu “has communicated to the Commission” and that is “above the DSA threshold for designation as a VLOP.”
According to the Commission, “Following today’s designation as a VLOP, Temu will have to comply with the most stringent rules under the DSA within four months of its notification (i.e. by the end of Sept. 2024), such as the obligation to duly assess and mitigate any systemic risks stemming from their services, including the listing and sale of counterfeit goods, unsafe or illegal products, and items that infringe intellectual property rights.”
A spokesperson for Temu told TFL on Friday, “Temu acknowledges the European Commission’s designation of our platform as a Very Large Online Platform under the Digital Services Act. We are fully committed to adhering to the rules and regulations outlined by the DSA to ensure the safety, transparency, and protection of our users within the European Union.”