The European Union has imposed a €200 million fine on Chinese-owned online retail platform Temu following findings that dangerous and unsafe products, including baby toys and faulty chargers, were being sold through its marketplace.
The sanction comes after an investigation launched in October 2024 into Temu’s compliance with obligations required of major online platforms under EU regulations.
According to the European Commission, Temu failed to properly identify, assess, and address risks associated with products sold on its platform, exposing consumers to potential harm.
As part of the investigation, an independent testing organisation conducted mystery shopping exercises, which reportedly revealed that many chargers purchased through the platform failed basic electrical safety standards. Investigators also discovered that several baby toys contained chemical substances above legal safety limits or had detachable small parts that posed choking hazards to children.
EU regulators have directed Temu to submit a corrective action plan before August 28, detailing measures to tackle the identified shortcomings. The Commission will then review the company’s compliance efforts within two months.
Speaking on the decision, EU technology commissioner Henna Virkkunen said the action sends a “very strong message” to online platforms regarding consumer protection responsibilities.
Reacting to the fine, a Temu spokesperson said the company respects the need for clear regulatory standards but argued that the ruling relates to practices from 2024 and does not accurately reflect current improvements made to its systems.
“We disagree with the European Commission’s decision and consider the fine disproportionate,” the company stated, adding that it is reviewing the ruling and considering its options.
The penalty is only the second major financial sanction issued under the EU’s Digital Services Act concerning content and platform regulation, following a €120 million fine imposed on X last December.
