Consumer groups have filed legal complaints with the European Commission and 15 EU countries alleging that Chinese online marketplace Temu is violating the European Union's online content law for platforms.
Groups affiliated to the European Consumer Organization, known by its French acronym BEUC, allege that Temu is breaking the Digital Services Act (DSA) with "manipulative techniques that are designed to push consumers to spend more," BEUC Director General Monique Goyens said in a press release.
"Temu is also frequently leaving consumers in the dark about who they are purchasing products from," she said.
The DSA prohibits manipulative interface designs, sometimes called "dark patterns." It also requires marketplaces to ensure traders are traceable.
Fines for DSA breaches can run to 6% of a company's annual global turnover.
"We take the BEUC's complaint very seriously and will examine it carefully," a Temu spokesman told dpa. "We are committed to fully complying with the laws and regulations of the markets in which we operate."
The DSA regulates online platforms, with the most stringent rules reserved for "Very Large Online Platforms," or VLOPs, with more than 45 million monthly active users in the EU.
The rules on dark patterns and trader traceability apply to platforms of all sizes.
Temu is not on the European Commission's official list of VLOPs, but it may be soon, having announced last month that it has around 75 million monthly users in the EU, despite setting up shop there just one year ago.
Non-VLOP DSA enforcement is the responsibility of EU member states, while the commission supervises the giants.