The European Union has imposed a hefty fine of €200 million on Chinese-owned online retail platform Temu after an investigation found that the company failed to prevent the sale of unsafe and illegal products on its marketplace. The European Commission announced that the penalty was issued under the bloc’s Digital Services Act (DSA), which places strict obligations on large online platforms to protect consumers and remove harmful products.
According to the Commission, Temu did not adequately identify or assess the risks associated with products being sold through its platform, including potentially dangerous baby toys and defective electrical chargers. Officials said the company had failed to take sufficient steps to ensure consumer safety, despite being categorised as a “Very Large Online Platform” under EU regulations.
The investigation into Temu began in October 2024 and focused on whether the e-commerce giant was complying with EU digital safety rules. As part of the inquiry, independent investigators conducted a mystery shopping exercise to examine the quality and safety of products available on the platform. The findings reportedly revealed widespread concerns.
Tests carried out on chargers purchased through Temu showed that many failed to meet basic electrical safety standards, raising fears about fire and electrocution risks. Investigators also found that several baby toys sold on the platform contained dangerous chemical levels above legally permitted limits. Some toys reportedly had small detachable parts that could pose choking and suffocation hazards for children.
European tech commissioner Henna Virkkunen said the fine was intended to send a strong signal to digital marketplaces operating within the European Union. She emphasised that online platforms must take responsibility for the safety of products offered to consumers and cannot ignore the risks associated with third-party sellers.
In addition to paying the fine, Temu has been directed to submit a detailed action plan by August 28 outlining how it intends to address the failures identified during the investigation. The European Commission will then review the proposed measures over the following two months before deciding whether the company has complied with EU requirements.
Temu, however, has objected to the ruling and described the financial penalty as excessive. In a statement, the company said it respected the need for clear and consistent regulations but argued that the decision was based on conditions from 2024 and did not accurately represent the improvements made to its systems since then.
Consumer rights organisations welcomed the EU’s move. UK-based consumer watchdog Which? praised the action and urged British authorities to adopt similar measures against online marketplaces selling unsafe goods. Sue Davies, head of consumer protection policy at Which?, said the decision demonstrated the type of strong enforcement needed to hold online retailers accountable for harmful products sold on their platforms.
The penalty against Temu marks only the second major fine issued under the EU’s Digital Services Act. The first was a €120 million fine imposed on social media platform X, owned by Elon Musk, in December last year over violations linked to online content regulations.
The latest action highlights the European Union’s increasingly strict stance on digital platforms and signals greater scrutiny of online marketplaces operating across the region.
