The Competition and Consumer Protection Commission (CCPC) is investigating Temu for potential breaches of consumer protection law.
The investigation is being jointly carried out with Belgian and German consumer authorities, through the European Commission's Consumer Protection Cooperation (CPC) Network.
Known for selling heavily discounted products manufactured in China, Temu has its European base in Dublin.
The CCPC said several problematic practices have already been identified and are considered by the CPC Network to be in potential breach of EU consumer protection law.
These include potentially misleading practices such as fake discounts, fake countdown timers, and missing or misleading information about products, sellers and consumer rights.
"All of these could interfere with the consumer’s right to make an informed decision about how and where they spend their money," said Kevin O'Brien, Member of the Competition and Consumer Protection Commission.
"Large online marketplaces have obligations under consumer law; we look forward to engaging constructively with Temu during this investigation," he added.
In response to the claims, a spokesperson for Temu said, "Temu acknowledges the concerns raised by the European Commission and national consumer authorities and reiterates our commitment to working closely with the relevant regulators to address any issues and ensure compliance with EU laws."
"Although we have gained popularity with many consumers in a relatively short time, we are still a very young platform - less than two years in the EU - and are actively learning and adapting to local requirements.
"We will fully cooperate with this investigation, as we believe that such scrutiny benefits consumers, merchants, and the platform in the long term," the spokesperson added.
The CCPC said information has been requested from Temu to assess if it is following EU consumer laws on discount calculation, product ranking, review and rating authenticity, trader identification, and environmental claims.
Temu now has one month to propose commitments on how they will address the identified consumer law issues.
