EU Fines Chinese Retailer Temu €200M for Allowing Sale of Illegal and Unsafe Products

The European Union has imposed a substantial €200 million fine on the Chinese online retailer Temu for its failure to adequately prevent the sale of illegal and unsafe products on its platform. This penalty, levied under the EU's Digital Services Act (DSA), follows an investigation which concluded that consumers were highly likely to encounter non-compliant items, including hazardous baby toys and defective electronic chargers.

The European Commission found Temu's 2024 risk assessment to be insufficient, as it relied on general industry data rather than specific evidence related to its own operations. A "mystery shopping" exercise provided further evidence of widespread illegal goods, identifying items such as baby toys with chemical levels exceeding legal limits and products posing suffocation risks.

Temu has until August 28, 2026, to submit an action plan detailing measures to rectify these breaches of its risk-assessment obligations. While Temu has stated disagreement with the fine, deeming it disproportionate, the EU underscores the seriousness of the infringement, noting this as the second major fine issued under the DSA.