EU Fines Chinese Retailer Temu Over €200M for Illegal Product Sales

The European Commission has imposed a significant €200 million fine on the Chinese online retailer Temu for failing to adequately address the sale of illegal and dangerous products on its platform. This penalty was issued under the Digital Services Act (DSA), a regulation designed to hold large online platforms accountable for harmful content and goods. The decision follows an investigation into the company's compliance with EU safety standards.

During an undercover "mystery shopping exercise," regulators discovered a high prevalence of unsafe items, including baby toys with chemical contamination and small detachable components, as well as electronic chargers that failed basic safety tests. The Commission criticized Temu's risk assessment as insufficient and not comprehensive, indicating that it underestimated the potential harm posed by illegal products.

Temu has expressed disagreement with the European Commission's ruling, stating that the fine is disproportionate. The company further argued that the findings stem from a 2024 evaluation and therefore do not accurately reflect the current state of its systems and improved platform governance measures.