EU fines Temu €200M over unsafe products, DSA violations

The European Commission on Thursday fined Chinese online marketplace Temu €200 million ($232 million) for systemic failures in protecting consumers from illegal and unsafe products, saying the platform's risk assessments lacked specificity and solid evidence required under the Digital Services Act. Undercover tests conducted during the investigation revealed widespread safety lapses, with many electronic chargers failing basic standards and baby toys containing excessive hazardous chemicals or presenting choking hazards.

Algorithm and Influencer Risks

Regulators also determined that Temu failed to evaluate how its recommendation algorithms and influencer marketing programs amplified the distribution of illicit goods across the bloc. European Commission Executive Vice-President Henna Virkkunen said in a statement that "risk assessments are not box-ticking exercises — they are the backbone of the DSA."

'Lacks Specificity'

She added that Temu's risk assessment "underestimates concrete risks, lacks specificity, is not grounded in solid evidence and is not comprehensive." The Commission has given Temu until Aug. 28 to submit a detailed compliance plan outlining remedial measures, warning that failure to meet the deadline could trigger additional penalties.

Investigation Background

The regulator opened its formal investigation into the platform in October 2024 amid growing scrutiny of consumer protection on rapidly expanding Chinese e-commerce platforms. Thursday's penalty marks one of the largest enforcement actions under the landmark digital regulation since it entered into force.