The European Union has fined Chinese-owned online retailer Temu €200 million for failing to prevent the sale of dangerous and illegal products, including hazardous baby toys and faulty chargers, on its platform.
The European Commission said Temu “failed to diligently identify, analyse and assess the systemic risks” linked to products sold on the platform and the potential harm to consumers.
The penalty follows a 19-month investigation launched in October 2024 under the EU’s Digital Services Act after Temu was designated a Very Large Online Platform. Mystery shopping exercises revealed a high proportion of baby toys containing chemicals above legal limits or featuring small detachable parts that posed suffocation hazards.
A significant percentage of chargers purchased through the platform also failed basic electrical safety tests.
EU technology commissioner Henna Virkkunen described the fine as sending a “very strong message” to Temu.
Temu must submit an action plan by August 28 detailing measures to address the identified failures, which the Commission will review within two months.
A Temu spokesperson said the company respects the need for clear rules but disagreed with the decision.
“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 spokesperson added that the ruling relates to 2024 and does not reflect the current state of the company’s systems.
This is only the second financial penalty imposed under the Digital Services Act for content regulation issues, following a €120 million fine against X last December.
