The European Union has imposed a €200 million fine on Chinese e-commerce platform Temu for failing to prevent the sale of illegal and unsafe products, including hazardous chargers and toxic toys, following an investigation under the Digital Services Act.
The European Union has imposed a €200 million fine on Chinese e-commerce giant Temu for systemic failures to prevent the sale of illegal and unsafe products on its platform.
The European Commission announced the penalty on Thursday, following an investigation that found numerous products violated EU safety standards. This enforcement action is one of the largest under the EU's Digital Services Act (DSA), which mandates that large online platforms proactively assess and mitigate risks of illegal content and goods. The commission emphasized that Temu's risk assessment was inadequate, lacking specificity and grounding in evidence. The investigation, which included mystery shopping exercises, uncovered a range of hazardous items.
Unsafe phone chargers with fire and electric shock risks, baby toys containing toxic chemicals exceeding legal limits, and products posing suffocation hazards were among the violations. The commission noted that Temu failed to diligently identify, analyze, and assess the systemic risks of illegal products being offered, leading to significant potential harm to consumers across the EU. Vice-President Henna Virkkunen stated that the company's approach left regulators and the public uninformed about the true scale of danger.
Temu, owned by PDD Holdings, has rapidly expanded in Europe, attracting millions of users with low prices. However, its growth has drawn scrutiny over product safety and compliance. The fine aims to enforce stricter adherence to EU regulations, requiring Temu to implement robust measures to prevent the sale of illegal goods. The commission warned that further penalties could follow if compliance is not achieved.
This case underscores the increasing accountability of e-commerce platforms under the DSA and highlights the EU's commitment to consumer protection. It also serves as a precedent for other platforms operating in the bloc, signaling that safety violations will not be tolerated. The fine, equivalent to about $232 million, is expected to impact Temu's operations and may lead to enhanced monitoring by regulators. Consumers are advised to be cautious when purchasing from such platforms and to report suspicious products.
The EU continues to invest in enforcement mechanisms to ensure a safe digital marketplace for all
Temu EU Fine Unsafe Products Consumer Safety Digital Services Act
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