Social Democrat MEP Biljana Borzan (S&D) joined Natasa Bozic on N1 Studio Live to discuss the market rules introduced by the European Union for digital marketplaces such as the Chinese platform Temu.

Borzan explained that the problems associated with platforms such as AliExpress or Temu, which are frequently reported by consumer associations, range from health risks to non-compliance with EU rules.

“Consumer associations from 17 EU countries have reported certain irregularities. These include health risks and products that do not comply with our regulations, which I have to say are the strictest in the world and really protect our consumers. But there are always those who try to sneak non-compliant products through the huge volume of goods imported into the EU.”

She added that the associations are also raising concerns about goods that may be produced in breach of EU laws, particularly in relation to the exploitation of labour, which the EU does not condone and often includes as a condition in trade agreements.

Health risks of products

Borzan clarified that children’s toys are the products most frequently reported for potential health risks.

“Unfortunately, I can say that toys are the most frequently reported products. We are all sensitive when it comes to children and it is noticeable when toys contain chemicals that can cause skin irritation, choking hazards and similar problems. Such products need to be taken off the market as soon as possible,” she explained, adding that a wide range of products are reported, with “everything kind of under a question mark.”

“I always advise people to check whether a product has the CE mark, which means it complies with EU standards. This is easier if you buy in a shop, but more difficult online, as it’s not always clear whether the items are labelled. There are checks at customs and in the shops… I do not think we’ll ever have a perfect market, but it’s something we should strive for to protect consumers.”

Temu’s response

As for Temu’s response to the consumer associations allegations and its response to the European Commission, Borzan clarified that the details are not public.

“They (Temu) have stated that they will co-operate fully and believe that they are not at fault. However, at this stage, the matter is still between the European Commission and Temu. The data is not public, so we do not yet know if they have responded or tried to justify their position. Should this be the case, the European Commission will either find compliance or a breach and recommend appropriate sanctions,” Borzan said, adding that Temu is likely to face a “dissuasive fine” for non-compliance

She also pointed out that fines for breaches of digital market regulations can reach “up to six per cent of global turnover”,” which Borzan considers to be a sufficient deterrent.

Borzan also gave some advice on how consumers can avoid scams and potentially risky products.

“A general piece of advice is that if something looks too good to be true, it’s probably a scam. If it’s incredibly cheap but looks very good, you’ll probably be disappointed when it arrives on your doorstep. You should be careful.”