NEWS
European Union Slams Temu With €200 Million Fine Over Dangerous Baby Toys, Faulty Chargers and Illegal Products on Its Platform
The European Union has imposed a €200m ($232m; £173m) fine on Chinese-owned online retailer Temu over the sale of illegal and potentially dangerous products on its platform, marking one of the biggest enforcement actions yet under the EU’s Digital Services Act.
The European Commission announced that Temu was found to have failed in adequately assessing and controlling the risks posed by products sold through its online marketplace, including dangerous baby toys and faulty electrical chargers that could expose consumers to serious harm.
According to the Commission, the company had “failed to diligently identify, analyse and assess the systemic risks” associated with products being sold through its platform and the potential danger they posed to users across Europe.
Temu has been under investigation since October 2024 following concerns over whether the company had complied with its obligations as a designated Very Large Online Platform under European Union regulations. The investigation focused on the company’s ability to monitor sellers, remove unsafe goods and protect consumers from hazardous products.
As part of the investigation, an independent testing organisation carried out a mystery shopping exercise on products purchased through Temu. The findings reportedly revealed widespread safety concerns. A high percentage of chargers purchased from the platform failed basic electrical safety tests, while many baby toys were found to contain chemicals above legal limits or included detachable small parts that could pose choking and suffocation risks to children.
The investigation findings, first reported by Euronews, intensified pressure on EU regulators to take decisive action against the online retailer.
Beyond the financial penalty, the European Commission has also ordered Temu to submit a comprehensive action plan detailing how it intends to correct the identified failures and improve product safety standards on its platform. The company has until 28 August to present the plan, after which the Commission will review whether the proposed measures are sufficient to ensure compliance with EU digital safety regulations.
Speaking on the development, EU tech commissioner Henna Virkkunen stated that the decision was meant to send a “very strong message” to Temu and other online marketplaces operating within the European Union.
In response, Temu pushed back against the ruling, insisting that the punishment was excessive and unfair.
“Temu respects the objectives 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 consider the fine to be disproportionate, We are reviewing the decision carefully and considering all available options,” the company said in a statement.
Consumer protection advocates in the United Kingdom welcomed the EU’s decision and urged British authorities to adopt similar measures against online marketplaces found selling dangerous products.
Sue Davies, head of consumer protection policy, described the sanction as a strong warning to digital marketplaces that fail to properly monitor goods sold through their platforms.
“The EU’s decision to fine Temu to the tune of €200m is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms,” she said.
She further called on the UK government to make use of new regulatory powers under the Product Regulation and Metrology Act to ensure online marketplaces become legally responsible for unsafe and dangerous products sold to consumers.
The Temu penalty is only the second major fine imposed under the European Union’s Digital Services Act related to online platform content and compliance obligations. The first was a €120m fine issued against Elon Musk’s X social media platform in December last year.
The latest move signals the European Union’s increasing determination to tighten regulations on major digital platforms and force stricter accountability over consumer safety, product standards and online marketplace operations across Europe.