In a stark reminder that consumer safety remains a top priority for the EU, the Commission has slapped Temu – a Chinese‑owned online storefront that has exploded in popularity across Europe – with a €200 m (about $232 m or £173 m) fine. The penalty is part of the Digital Services Act’s first large‑scale enforcement action against a “very large online platform”, aimed at making sure companies ensure that products sold on their sites meet safety standards.
The Commission’s decision followed a mystery‑shopping probe carried out by an independent testing firm. The study found that up to 40 % of the chargers sold on Temu failed basic electrical safety tests and that many baby toys either contained chemicals above legal limits or featured small detachable parts that posed suffocation risks. Temu failed to diligently identify, analyse and assess the systemic risks of the products, the Commission warned.
Under EU law, Temu is required to monitor the safety of goods it hosts. It has been under investigation since October 2024 to determine whether it satisfies the obligations tied to its status as a designated very large platform. The fine will be paid at once, and the company has until 28 August to submit a detailed action plan outlining how it will mitigate the safety gaps. The Commission will then review the plan and decide in two months whether the measures are sufficient.
Henna Virkkunen, EU tech commissioner, said in a press briefing that the case sends a very strong message to all large distributors: the EU will act when products put consumers at risk.
Temu’s response was swift. We disagree with the Commission's decision and consider the fine disproportionate, the company’s spokesperson said. We are reviewing the decision carefully and considering all available options, they added. The firm also stressed that changes reported in 2024 do not reflect the current state of its systems and that it respects the need for clear, consistent rules.
This penalty is only the second large fine under the Digital Services Act, following the €120 m sanction imposed on Elon Musk’s X social‑media platform in December. As the EU looks to keep its markets safe, shops like Temu face increased scrutiny, and consumers are reminded that not all items bought online meet the same safety standards that apply in physical stores.
The fine’s impact on Temu’s business could be profound, especially as the company has seen its revenues hit by the broader trade tensions between the U.S. and China. Nevertheless, the company claims it is improving its controls and advancing a compliance strategy. The outcome of this case will likely set a significant precedent for other marketplaces operating in the European market.
For more on the safety concerns surrounding Temu and other digital platforms, link to related stories. Further reading:
• Every day multiple consumer complaints show the risks of allowing questionable products on large marketplaces.
• How the Digital Services Act is reshaping oversight of online retail.
The Commission’s decision followed a mystery‑shopping probe carried out by an independent testing firm. The study found that up to 40 % of the chargers sold on Temu failed basic electrical safety tests and that many baby toys either contained chemicals above legal limits or featured small detachable parts that posed suffocation risks. Temu failed to diligently identify, analyse and assess the systemic risks of the products, the Commission warned.
Under EU law, Temu is required to monitor the safety of goods it hosts. It has been under investigation since October 2024 to determine whether it satisfies the obligations tied to its status as a designated very large platform. The fine will be paid at once, and the company has until 28 August to submit a detailed action plan outlining how it will mitigate the safety gaps. The Commission will then review the plan and decide in two months whether the measures are sufficient.
Henna Virkkunen, EU tech commissioner, said in a press briefing that the case sends a very strong message to all large distributors: the EU will act when products put consumers at risk.
Temu’s response was swift. We disagree with the Commission's decision and consider the fine disproportionate, the company’s spokesperson said. We are reviewing the decision carefully and considering all available options, they added. The firm also stressed that changes reported in 2024 do not reflect the current state of its systems and that it respects the need for clear, consistent rules.
This penalty is only the second large fine under the Digital Services Act, following the €120 m sanction imposed on Elon Musk’s X social‑media platform in December. As the EU looks to keep its markets safe, shops like Temu face increased scrutiny, and consumers are reminded that not all items bought online meet the same safety standards that apply in physical stores.
The fine’s impact on Temu’s business could be profound, especially as the company has seen its revenues hit by the broader trade tensions between the U.S. and China. Nevertheless, the company claims it is improving its controls and advancing a compliance strategy. The outcome of this case will likely set a significant precedent for other marketplaces operating in the European market.
For more on the safety concerns surrounding Temu and other digital platforms, link to related stories. Further reading:
• Every day multiple consumer complaints show the risks of allowing questionable products on large marketplaces.
• How the Digital Services Act is reshaping oversight of online retail.
