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The European Commission has fined Chinese online marketplace Temu €200 million, saying it failed to properly protect consumers in the European Union from unsafe and illegal products sold on its platform. The penalty was announced on Thursday under the EU's Digital Services Act, a law that places strict obligations on large online platforms to identify and reduce risks linked to illegal goods and content.
EU regulators say Temu did not adequately assess the risks faced by users in the bloc, and underestimated how often consumers could be exposed to unsafe products. As part of the investigation, officials carried out "mystery shopping" tests to evaluate the platform's safety compliance.
They found that some chargers sold on the platform failed basic safety standards, while a significant number of baby toys contained hazardous chemicals or posed choking risks. These product safety failures represented direct risks to European consumers, particularly children.
The Commission also said Temu failed to properly evaluate how its recommendation algorithms and influencer marketing systems could amplify the visibility of illegal products. The platform's technological systems may have inadvertently promoted dangerous items to consumers.
European Commission Executive Vice-President Henna Virkkunen said risk assessments are not a formality, but a core requirement of the law. She added that Temu's assessment was not sufficiently detailed, not evidence-based, and not comprehensive, failing to meet the statutory obligations.
Under the ruling, Temu has until 28 August to submit a compliance plan explaining how it will meet EU rules. If it fails to do so, it could face further penalties, potentially escalating the financial and regulatory consequences for the Chinese e-commerce giant.
