EU Fines Temu €200m Over Sale Of Illegal, Unsafe Products

The European Union has fined Chinese-owned online retail platform Temu €200 million ($232 million) for allegedly allowing the sale of illegal and unsafe products, including dangerous baby toys and faulty phone chargers, on its marketplace.

The European Commission said Temu failed to adequately assess and address the risks posed by products sold through its platform, exposing consumers to potential harm.

According to the Commission, the company “failed to diligently identify, analyse and assess the systemic risks” associated with products available for sale.

Temu has been under investigation since October 2024 over concerns about its compliance with obligations imposed on designated Very Large Online Platforms under the EU’s Digital Services Act (DSA).

An investigation involving a mystery shopping exercise conducted by an independent testing organisation reportedly found that a significant number of chargers purchased through Temu failed basic electrical safety standards.

The probe also discovered that many baby toys sold on the platform posed serious safety risks, including excessive levels of harmful chemicals and detachable small parts capable of causing suffocation hazards, according to Euronews.

Beyond the financial penalty, Temu has been directed to submit a corrective action plan by August 28 to address the identified shortcomings. The European Commission will then assess, within two months, whether the company has taken sufficient steps to comply with EU regulations.

EU tech commissioner Henna Virkkunen said the ruling was intended to send a “very strong message” to the online retailer and other digital platforms operating within the bloc.

Reacting to the decision, a Temu spokesperson said the company respected the importance of “clear, consistent rules,” but argued that the ruling was based on issues identified in 2024 and did not reflect the current state of its compliance systems.

“We disagree with the European Commission’s decision and consider the fine to be disproportionate,” the spokesperson said.

“We are reviewing the decision carefully and considering all available options.”

The sanction marks only the second major penalty issued under the EU’s Digital Services Act relating to online content and platform responsibility.

The first was a €120 million fine imposed on Elon Musk-owned social media platform X in December last year.