European regulators have fined the Chinese shopping site Temu €200 million (£173 million) for not stopping the sale of illegal and dangerous products.
The European Commission imposed the penalty after a 19-month investigation found that consumers were very likely to come across illegal or unsafe items on the site, including baby toys and electronics.
A secret shopping test carried out for the commission found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, along with unsafe clothes and jewellery.
Consumer groups across Europe have previously reported baby toys with loose parts that could cause choking, dummy chains long enough to strangle a child, jewellery containing dangerous metals like lead, clothes made with banned chemicals, and chargers that could cause burns, electric shocks, or fires.
The commission also criticised Temu for not having proper controls over its website design. It said that recommender systems and promotions by influencers “could amplify the risk of spreading illegal products.”
The €200 million fine is the second and largest ever imposed under the EU’s Digital Services Act (DSA), which has applied to the world’s biggest tech companies since February 2024. It follows a €120 million penalty given to Elon Musk’s X last December for “deceptive” verification badges and a lack of transparency about advertising.
A senior EU official said the commission found a particularly serious breach of the act related to an inadequate risk assessment on unsafe products that Temu carried out in 2024.
The fine is only a small part of Temu’s fast-growing revenue. Its parent company, PDD Holdings, reported global revenues of $54 billion (£40 billion) in 2024, though this includes income from another popular Chinese e-commerce site, Pinduoduo. Under the DSA, a company can be fined up to 6% of its global turnover.
The senior EU official said the fine was fair and that other parts of the investigation into Temu, which could also lead to financial penalties, are still ongoing. The commission is also looking into the sale of illegal products, addictive design, and whether independent researchers have access to Temu’s data.
Temu has 130 million consumers in the EU, nearly a third of the population. Once nicknamed the “price butcher,” it offers a huge range of very cheap products and has become a market leader in many countries.
The DSA is designed to protect people from a wide range of online harms, from disinformation and age-inappropriate content to unsafe products.
The European Commission vice-president in charge of tech regulation, Henna Virkkunen, said: “Temu’s risk assessment underestimates real risks, lacks detail, is not based on solid evidence, and is not thorough. It leaves regulators, users, and the public in the dark about the true scale of potential harm from illegal products sold on Temu.”
“Now it’s time for Temu to follow the law.”
Temu, which has the right to appeal the fine, said it was “reviewing the decision carefully and considering all available options.”
A company spokesperson said: “Temu respects the goals of the Digital Services Act and the need for clear, consistent rules across the digital economy. However, we disagree with the European Commission’s decision and believe the fine is unfair.”
“The decision relates to our first DSA assessment in 2024 and does not reflect the current state of our systems. Temu worked constructively with the commission throughout the process and has since taken further steps to improve risk assessment, platform governance, and user protection.”
Temu has until August 28 to submit an action plan to the commission explaining how it plans to fix the situation.
Frequently Asked Questions
Here is a list of FAQs about the EU fining Temu for not preventing the sale of illegal and dangerous products
BeginnerLevel Questions
1 Why did the EU fine Temu
The EU fined Temu because they didnt do enough to stop people from selling illegal or dangerous items on their platform Think fake medicines unsafe electronics or banned toys
2 How much was the fine
The European Commission fined Temu 45 million Thats a big number but its actually a relatively small fine compared to what the EU can give
3 What kind of dangerous products are we talking about
Things like cosmetics with banned chemicals electrical chargers that could catch fire fake pesticides and toys with small parts that are a choking hazard Basically anything that could hurt you or break the law
4 Does this mean Temu is shut down in Europe
No The fine doesnt shut Temu down Temu still operates in the EU but it now has to follow stricter rules to check what sellers are offering
5 Is it still safe to buy from Temu
Most items are probably fine but you should be extra careful The fine shows that Temu wasnt checking its products well enough Stick to wellknown brands on the site and read reviews carefully
AdvancedLevel Questions
6 What specific EU law did Temu break
Temu was fined under the Digital Services Act The DSA requires very large online platforms to assess and reduce systemic risks like the spread of illegal goods The EU said Temu failed to properly assess this risk and didnt have enough moderators or automated checks
7 Why is the fine only 45 million Isnt that tiny for a company like Temu
It is small Under the DSA fines can be up to 6 of a companys global annual turnover However this was an initial interim penalty for not responding fast enough to the EUs formal information requests The EU is still investigating and a much larger fine could come later
8 What does Temu have to do now to fix the problem
The EU ordered Temu to
