EU regulators fined Temu €200m after finding serious gaps in its handling of illegal and unsafe products sold through the online marketplace.
EU regulators have fined Temu €200m ($232m; £173m), saying the Chinese-owned online marketplace failed to properly assess and limit the risks posed by illegal and dangerous products sold on its platform.
The European Commission imposed the penalty after a 19-month investigation that found consumers were very likely to encounter unsafe goods on Temu, including baby products and electronics. The case is one of the most significant enforcement actions so far under the EU’s Digital Services Act, the bloc’s sweeping law for large online platforms.
The commission said Temu had “failed to diligently identify, analyse and assess the systemic risks” linked to such products and the potential harm to consumers. A mystery-shopping exercise carried out for the commission found a high share of unsafe baby products and a very high share of dangerous chargers available through the site, along with unsafe clothing and jewellery.
Consumer groups in Europe have previously flagged baby toys with loose parts that could create choking hazards, dummy chains long enough to pose strangulation risks, jewellery containing dangerous metals including lead, clothing made with banned chemicals and chargers that could cause burns, electric shocks or fires.
Regulators also criticised the way Temu’s platform design may affect the spread of unsafe listings, saying recommender systems and influencer promotions “could amplify dissemination risks of illegal products.” A senior EU official said the commission found a particularly serious breach involving Temu’s 2024 risk assessment of unsafe products.
Henna Virkkunen, the European Commission vice-president responsible for tech regulation, said Temu’s assessment “underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive.” She added: “Now it is time for Temu to comply with the law.”
Temu said it disagreed with the decision and considered the fine disproportionate. A company spokesperson said the decision related to its first Digital Services Act assessment in 2024 and “does not reflect the current state of our systems.” The company said it was reviewing the decision and considering its options.
Temu has until 28 August to submit an action plan explaining how it will address the failures identified by the commission. Regulators then have two months to decide whether the plan is sufficient. Temu also has the right to appeal the fine.
The penalty is the second imposed under the Digital Services Act and the largest so far, following a €120m fine against Elon Musk’s X over verification badges and advertising transparency. Under the law, companies can be fined up to 6% of global turnover.
Temu has about 130 million consumers in the EU and has grown rapidly by offering a wide range of low-cost goods. Its parent company, PDD Holdings, reported global revenue of $54bn in 2024, including revenue from another Chinese e-commerce platform, Pinduoduo.
The commission said other parts of its investigation into Temu are continuing, including issues involving the sale of illegal products, addictive design and whether independent researchers have adequate access to Temu data.
Comments (0)