By Stephen Simon
European Union regulators have fined Chinese online shopping platform €200 million (£173 million) for allegedly failing to prevent the sale of illegal and dangerous products on its marketplace.
The penalty was imposed by the after a 19-month investigation into the company’s operations across Europe.
According to the Commission, consumers using the platform were highly likely to encounter unsafe or illegal products, including baby toys, electronics, clothing, jewellery, and chargers that posed significant safety risks.
An unpublished mystery shopping exercise reportedly conducted for the Commission uncovered what officials described as a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers being sold on the platform.
Authorities said some of the products posed risks of choking, strangulation, burns, electric shocks, and fire outbreaks.
Consumer protection groups across Europe had previously raised concerns over several Temu products, including toys with loose parts, dummy chains considered hazardous for infants, jewellery allegedly containing dangerous metals such as lead, and clothing made with banned chemicals.
The Commission also criticised the company’s online design systems, warning that its recommendation algorithms and influencer-driven promotions could increase the spread of illegal products.
The €200 million sanction is the second and largest fine issued so far under the European Union’s Digital Services Act (DSA), a sweeping online regulation framework that came into effect for major technology companies in February 2024.
The development follows a €120 million fine imposed on , owned by , last December over issues relating to verification badges and advertising transparency.
A senior EU official reportedly described Temu’s breach as particularly serious, saying the company failed to carry out an adequate risk assessment regarding unsafe products sold through its platform.
Despite the fine, the penalty represents only a small fraction of the company’s rapidly growing earnings.
Temu’s parent company, , recorded global revenues of approximately $54 billion in 2024, including earnings from its sister platform, Pinduoduo.
Under the Digital Services Act, companies can be fined up to six per cent of their global turnover for serious violations.
European regulators disclosed that investigations into Temu are still ongoing, with authorities examining other possible breaches involving the sale of illegal products, addictive digital design features, and access to company data by independent researchers.
The Digital Services Act was introduced to strengthen online safety and protect users against risks ranging from disinformation and harmful content to fraudulent or unsafe products.
European Commission Vice-President , who oversees technology regulation, accused Temu of understating the dangers associated with products sold on its platform.
“Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive,” Virkkunen said.
She added that the company’s approach left regulators and consumers “in the dark about the true scale of potential harm posed by illegal products sold on Temu.”
