Temu's Potential Collaboration to Combat Counterfeits in Europe

By Helen Reid

LONDON (Reuters) – Chinese online retailer Temu is considering joining a group of ecommerce platforms and brands that collaborate to prevent the sale of fake products online in Europe, according to a meeting agenda seen by Reuters.

MoU on Counterfeit Goods

The "Memorandum of Understanding (MoU) on the sale of counterfeit goods on the internet" is a voluntary agreement facilitated by the European Commission. Signatories include prominent online retailers Amazon (NASDAQ:AMZN), Alibaba (NYSE:BABA), and eBay (NASDAQ:EBAY), along with brands like Adidas (OTC:ADDYY), Nike (NYSE:NKE), Hermes, and Moncler.

Temu is set to make a presentation at a Nov. 11 meeting of the MoU members as a "potential new signatory"
The agenda note revealed.

Pressure from Authorities

Temu did not reply to a request for comment on the document, and a European Commission spokesperson also did not respond. Temu's engagement with the anti-counterfeits network comes as EU authorities ramp up pressure on the retailer to improve product controls in its marketplace and ensure illegal or unsafe items do not enter the bloc.

A subsidiary of Chinese ecommerce giant PDD Holdings, Temu has rapidly grown in Europe and the United States through aggressive marketing. It attracts millions of users with its slogan "shop like a billionaire," offering low prices on a wide range of products including kitchen appliances, electronics, clothing, and accessories.

Concerns over Credibility

Many of the clothes, shoes, and handbags sold on the site are designed to resemble popular branded products at a fraction of the price.
An industry source, who requested anonymity, expressed concern that accepting Temu as a signatory could undermine the credibility of the MoU network.

After its average monthly users in the EU reached 75 million earlier this year, the European Commission designated Temu as a “very large online platform.” This classification means it must take stronger measures against illegal and harmful content, as well as counterfeit products, under the EU’s Digital Services Act (DSA).

Bloomberg News reported that the Commission is set to launch an investigation into Temu's compliance with the DSA. This comes after the Commission had requested information from Temu regarding its steps to prevent illegal products from being sold on its platform. Temu was required to provide this information by Oct. 21, and the Commission indicated it would evaluate Temu’s responses to determine the next steps.