(European Commission corrects value of products to 150 euros

from 22 euros in paragraph 4)

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Temu, Shein to be liable for sale of unsafe goods on their

platforms

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Value of low-value items shipped into EU has rocketed

By Foo Yun Chee

BRUSSELS, Feb 5 (Reuters) - Chinese online marketplace

Temu and fast-fashion retailer Shein will be liable for the sale

of unsafe and dangerous products on their platforms, the

European Commission said on Wednesday, as part of a crackdown

against a flood of cheap e-commerce imports into the European

Union.

The EU executive also said it would coordinate a joint

investigation by the Consumer Protection Cooperation Network of

national consumer authorities into Shein based on suspicions

that the company infringes EU consumer protection rules.

The measures by the EU executive echo a similar push by the

U.S. government which ended a trade provision this week used by

retailers including Temu and Shein to ship low-value packages

duty-free to the United States.

The Commission said its concerns were triggered by some 4.6

billion low-value items below 150 euros ($156) imported into the

EU last year, equal to 12 million parcels per day, 91% of which

came from China. The 4.6-billion-euro figure was double that in

2023.

"Under certain conditions, marketplaces can also be held

liable for the sale of non-compliant or dangerous products. They

are exempted from liability for the illegal behaviour of the

sellers, but subject to certain conditions," the Commission said

in its guidelines.

It said cheap, unsafe imports posed unfair competition to EU

sellers that follow the rules while the large number of packages

being shipped has a negative impact on the environment and

climate.

The EU executive will also propose to EU countries a

handling fee for e-commerce imports to meet the cost of

supervising such imports.

The Commission, which in 2023 proposed scrapping the

duty-free exemption for parcels below 150 euros as part of a

reform of the bloc's custom rules, urged EU countries to quickly

adopt the measure.

Under a new measure called product safety sweep, EU

countries can for the first time check via an e-surveillance

tool before products are shipped whether they are dangerous or

not.

"We want to see a competitive e-commerce sector that keeps

consumers safe, offers convenient products, and is respectful of

the environment," EU tech chief Henna Virkkunnen said in a

statement.

Shein said it would engage with the consumer agencies and

the Commission.

"We share the CPC Network's goal of ensuring European

consumers can shop online with peace of mind, and we intend to

work closely with the CPC Network and the Commission to address

any concerns," a spokesperson said.

Temu, already the subject of an EU investigation under the

Digital Services Act since last October, did not immediately

respond to a request for comment. Commission officials said they

were assessing its response to their concerns and those of

consumer watchdogs.

($1 = 0.9605 euros)

($1 = 0.9648 euros)