This claim is misleading and false.
The article is coming from the news outlet Fortune which is a trustworthy and informational source as they state: “Fortune’s mission is to change the world by making business better. We achieve that by providing trusted information, telling great stories, and building world-class communities. We measure performance by rigorous benchmarks, and we hold companies accountable.”
The article’s content is less focused on Temu getting fined, but rather reporting that they are “at risk” for being fined for “breaching European Union Consumer Protection laws.” They further report that they have exemplified “problematic practices” and “are in violation of the EU’s product safety rulebook” In addition, they have another investigation that is in violation of the Digital Services Act, but have not pressed charges yet.
The EU is giving a one-month deadline for Temu to correct its action and prove that it will propose solutions to the commission’s consumer protection concerns. If they don’t comply only then they will be fined.
In addition to this article, other coverage is found from Reuters and The Guardian. Reuters explains that Temu will be investigated by the EU. The article from Fortune does not explicitly state that, but it seems that it may lead on the reader since it implies that Temu has already been investigated. They do, however, confirm that Temu could be fined as much as 6% of its global turnover. The Guardian labels “at risk of being fined” as Temu having “court proceedings.” They generally say the same thing that Temu has violated the Digital services Act. Additionally, they state that there are suspicions that they may be selling counterfeit products and have concerns over them having created an addictive platform.
The original source from where Fortune, Reuters, and The Guardian may be reporting from is the
EU where they have a press release titled, Commission and national authorities urge Temu to respect EU consumer protection laws. Within this statement, they state that they are still under investigation due to the fact that they give fake discounts, put customers under pressure to purchase, utilize forced gamification, display misleading and incorrect information, showcase fake reviews, and hide their contact information. They counteract the claim that Temu has already been fined because they’ve announced that they are giving Temu one month to reply to the findings and make proper commitments of change for the company.
They also state: “If Temu fails to address the concerns raised by the CPC Network, national authorities can take enforcement measures to ensure compliance. This includes the possibility to impose fines based on Temu's annual turnover in the Member States concerned.”
In essence, they’re willing to fine Temu as long as Temu doesn’t show they improve or will make acceptable changes.
Sources
https://fortune.com/europe/2024/11/08/temu-faces-second-eu-probe/
https://www.theguardian.com/world/european-commission
https://www.reuters.com/business/retail-consumer/temu-be-investigated-by-eu-tech-regulators-over-sale-illegal-products-2024-10-31/
https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5707
