EU Fines Temu €200 Million for Selling Unsafe Products

Brussels. Chinese online retail company Temu has been fined €200 million (approximately US$232 million) for allowing the sale of illegal and unsafe goods on its platform. According to the European Commission, Temu failed to take sufficient precautions to identify, assess, and evaluate the risks to consumers from dangerous children's toys, faulty chargers, and other products.

Temu has been under investigation since October 2024 to determine whether it has fulfilled its obligations as a 'very large online platform' under the EU's Digital Services Act. During the investigation, 'mystery shopping' conducted by independent testing agencies found that many chargers purchased from Temu failed basic electrical safety tests. Similarly, many children's toys were found to contain chemicals exceeding legal limits and posed a choking hazard due to small parts that could detach.

In addition to the fine, Temu must submit an action plan to resolve the issues by August 28. The European Commission will then decide whether the company has made sufficient improvements. EU Technology Commissioner Henna Virkkunen stated that this decision was made to send a strong message to Temu. 

Temu, however, has expressed disagreement with the decision, stating that the fine is excessive. A company spokesperson said the decision relates to the situation in 2024 and does not reflect the current system. This is the second largest fine related to content under the EU's Digital Services Act. Previously, in December, the micro-blogging website X was ordered to pay a fine of €120 million.