EU fines Temu $232M over illegal products, risk assessment failures

The European Commission on Thursday fined Chinese online marketplace Temu €200 million ($232 million), saying it failed to adequately protect EU consumers from illegal and unsafe products sold on its platform.

The Commission said Temu did not properly identify or assess risks faced by users in the bloc and underestimated how frequently consumers were likely to encounter illegal goods.

According to the Commission, mystery shopping tests carried out during the investigation found that many chargers sold on Temu failed basic safety standards, while a high percentage of baby toys contained excessive levels of hazardous chemicals or posed choking risks.

EU regulators also said Temu failed to assess how its recommendation systems and influencer promotion programs could contribute to the spread of illegal products.

The penalty was issued under the European Union's Digital Services Act (DSA), which requires major online platforms to assess and mitigate risks linked to illegal content and products.

“Risk assessments are not box-ticking exercises – they are the backbone of the DSA,” European Commission Executive Vice-President Henna Virkkunen said in a statement.

“Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence and is not comprehensive,” she added.

The Commission said Temu has until Aug. 28 to submit a plan outlining how it will comply with the rules. Failure to do so could result in additional penalties.

The investigation began in October 2024.