LONDON, Oct 31 (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.
The "Memorandum of Understanding (MoU) on the sale of
counterfeit goods on the internet" is a voluntary agreement
facilitated by the European Commission, and signatories include
online retailers Amazon ( AMZN ), Alibaba ( BABA ), and eBay ( EBAY ), and brands like
Adidas, Nike ( 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
showed.
Temu did not reply to a request for comment on the document.
A European Commission spokesperson did not reply to a request
for comment.
Temu's engagement with the anti-counterfeits network comes
as European Union authorities ramp up pressure on Temu to
improve its controls on products sold to European shoppers on
its marketplace and ensure illegal or unsafe items do not enter
the bloc.
Temu, a subsidiary of Chinese ecommerce giant PDD Holdings ( PDD ),
has grown rapidly in Europe and the United States through
aggressive marketing, drawing millions of users to its website
and app with the slogan "shop like a billionaire", offering
rock-bottom prices on everything from kitchen appliances and
electronics to clothing and accessories.
Many of the clothes, shoes, and handbags sold on the site
are designed to look similar to popular branded products, at a
fraction of the price.
An industry source, who asked not to be named, said they
were concerned that accepting Temu's signature to the MoU would
affect the credibility of the network.
After its average monthly users in the EU hit 75 million
earlier this year, the European Commission designated Temu a
"very large online platform", meaning it must do more to fight
illegal and harmful content as well as counterfeit products on
its platform under the EU's Digital Services Act (DSA).
Bloomberg News reported on Wednesday that the Commission was
set to launch an investigation into Temu over whether it is in
breach of the DSA.
The report came after the Commission earlier this month
requested information from Temu on the steps it is taking to
prevent illegal products being sold on its platform.
Temu had to provide the information by Oct. 21 and the
Commission at the time said it would "determine the next steps"
after assessing Temu's responses.