EU Issues €200 Million Penalty to Temu Over Unsafe and Illegal Products

The European Union has fined Chinese e-commerce platform Temu €200 million ($232 million / £173 million) after determining that illegal and potentially dangerous products were being sold through its marketplace.

According to the European Commission, Temu did not adequately identify, evaluate, or address the systemic risks associated with products offered on its platform, exposing consumers to potential harm. The company has been under EU scrutiny since October 2024 regarding its compliance with requirements imposed on Very Large Online Platforms under the bloc's digital regulations.

Temu rejected the Commission's conclusions, describing the financial penalty as excessive and stating that it is currently reviewing possible responses to the ruling. As part of the investigation, an independent testing body conducted undercover purchases from the platform. The assessment reportedly revealed that many chargers bought through Temu failed essential electrical safety standards. In addition, numerous baby toys were found to present safety concerns, including excessive levels of restricted chemicals and small detachable components that could create choking risks, according to Euronews.

Beyond paying the fine, Temu has been instructed to submit a corrective action plan by 28 August outlining how it will address the identified shortcomings. The European Commission will then have two months to evaluate whether the proposed measures satisfy regulatory requirements. EU Commissioner for Technology Henna Virkkunen stated that the ruling is intended to serve as a clear warning to online marketplaces about their responsibilities toward consumer safety.

In response, a Temu spokesperson emphasized that the company supports transparent and consistent regulation but argued that the findings were based on conditions from 2024 and do not accurately represent its current safety systems. The spokesperson reiterated the company's view that the sanction is disproportionate and confirmed that all available legal and regulatory options are being considered.

The decision was welcomed by the UK consumer advocacy group Which?, which called on British authorities to adopt a similar approach. Sue Davies, the organization's head of consumer protection policy, said the EU's action demonstrates the level of enforcement needed to ensure online marketplaces are held accountable for unsafe products sold through their platforms. Davies also urged the UK government to use powers granted under the Product Regulation and Metrology Act to make online marketplaces legally liable for dangerous goods offered to consumers.

The penalty against Temu marks only the second fine issued under the EU's Digital Services Act concerning platform content and compliance. The first occurred in December, when social media platform X, owned by Elon Musk, received a €120 million penalty.

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