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Shein and Temu Face EU DSA Scrutiny After Consumer Complaints

The Commission’s first DSA requests to Shein and Temu were information-gathering steps, not findings of wrongdoing. Later proceedings, preliminary findings and separate consumer-law action followed.
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The European Commission’s first Digital Services Act (DSA) requests to Shein and Temu, announced on 28 June 2024, were demands for information—not findings that either company had broken the law. Since then, the cases have moved at different speeds: the Commission opened formal proceedings against Temu in 2024 and Shein in 2026, while a separate consumer-law process has addressed marketplace practices. A 2026 report also says Temu received a €200 million fine over its assessment of systemic risks from illegal products; that does not, by itself, resolve every issue under investigation.

What the EU’s June 2024 requests did—and did not—mean

After complaints from consumer organisations, the Commission asked Shein and Temu for information about how they met DSA obligations. The subjects included how users could report illegal products, whether interfaces might manipulate or deceive users, protections for minors, recommender-system transparency, trader traceability and compliance by design.

An information request is an evidence-gathering step. It is not a formal charge, a ruling that a platform breached the DSA, or an order to compensate consumers. The Commission’s later actions against the companies must be read according to their separate procedural stages.

How the two DSA cases have progressed

Platform Procedural stage and timing Issues identified by the Commission What the stage means
Temu Information request to both platforms on 28 June 2024; formal proceedings opened on 31 October 2024; preliminary findings issued on 28 July 2025. A 2026 EURAXESS report says the Commission imposed a €200 million fine concerning Temu’s systemic-risk assessment. The formal inquiry covers systems to prevent illegal or non-compliant products and the return of rogue sellers or goods, potentially addictive game-like design, recommender disclosures and researcher access to public data. The July 2025 preliminary findings concerned Temu’s assessment of risks from illegal products. Preliminary findings are not a final decision. The reported fine concerns a specific risk-assessment issue; it should not be treated as resolution of all parts of the DSA inquiry or the separate consumer-law action.
Shein Information request to both platforms on 28 June 2024; a further information request on 6 February 2025; formal DSA proceedings opened on 17 February 2026. The Commission’s later proceeding focuses on illegal products, potentially addictive design and rewards, and recommender transparency. The February 2025 request also sought information about illegal goods and content, recommenders, researcher access, consumer protection, public health, wellbeing and personal data. The 2026 announcement opened formal proceedings; it was not itself a final finding of non-compliance.

For Shein’s February 2025 request, the Commission described the inquiry as ongoing and distinguished it from the consumer-law investigation. The Commission’s announcement sets out the subjects of that request.

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What Temu’s preliminary findings said

In July 2025, the Commission said its mystery-shopping analysis indicated that consumers were very likely to encounter non-compliant products, including baby toys and small electronics. It presented this as a preliminary view about Temu’s assessment of systemic risks, and Temu retained the right to respond. The announcement did not provide a product-testing percentage in the material available here.

What the reported Temu fine covers

A 2026 EURAXESS report says the Commission issued a €200 million fine because Temu had not diligently assessed systemic risks related to illegal products. The report gave 28 August 2026 as the deadline for an action plan. A deadline passing does not establish whether Temu submitted a plan or whether the Commission accepted it. The report also says other parts of the Temu inquiry remained open, so the fine should not be read as a decision on every issue in that case.

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Consumer-law complaints are a separate track

The Commission’s DSA supervision and the Consumer Protection Cooperation (CPC) Network’s work are related but legally distinct. The CPC Network brings together national consumer authorities, coordinated by the Commission, to address cross-border consumer-law concerns. The Commission describes CPC action and DSA enforcement as complementary; an assessment in the CPC process is not automatically a DSA finding.

Concerns raised about Shein

On 26 May 2025, the Commission and national consumer authorities identified practices they considered contrary to EU consumer law. Their concerns included fake discounts, false purchase deadlines, misleading or incomplete returns and refund information, deceptive labels, sustainability claims, and contact details that were difficult to find. These were the authorities’ assessments, not a court ruling.

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Concerns raised about Temu

The Commission’s marketplace information describes CPC concerns about purported fake discounts and scarcity claims, forced gamification, incomplete information about consumer rights, suspected inauthentic reviews and hidden contact information. The CPC Network also requested information on seller identity, ranking and reviews, price reductions and environmental claims. These concerns belong to the consumer-law process, not automatically to Temu’s DSA case.

The Commission’s marketplace page describes CPC action against both platforms as ongoing. That status should not be confused with the separate DSA proceedings or with the reported Temu fine.

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Why the Commission is supervising these platforms

The DSA gives the Commission direct responsibility for supervising the strictest platform obligations that apply to designated very large online platforms and search engines. The Commission says the designation threshold is more than 45 million monthly users in the EU. National Digital Services Coordinators enforce the Act in their Member States, and users who want to report a suspected DSA violation can contact their national coordinator.

That threshold explains the Commission’s role; it does not mean that every allegation about a marketplace is already proven or that every consumer complaint is handled through a DSA proceeding.

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What consumers can—and cannot—infer

  • A request for information is not a verdict. The June 2024 notices began scrutiny; the later formal proceedings and preliminary findings are distinct steps.
  • The cases are not identical. Temu’s proceeding began earlier, while Shein’s formal proceeding began in 2026. The Commission identified different issue sets at different stages.
  • A regulatory action is not an individual remedy. These announcements do not establish that a particular product is unsafe, guarantee a refund, or decide an individual dispute with a seller.
  • Keep legal tracks separate. DSA oversight concerns platform obligations; CPC action addresses marketplace commercial practices under consumer-protection law.

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