The European Commission has fined Chinese-owned online marketplace Temu €200m ($232m; £173m) after finding that illegal and unsafe products, including hazardous baby toys and defective chargers, were available for sale on its platform.
According to the Commission, Temu “failed to diligently identify, analyse and assess the systemic risks” posed by such products and the potential harm to consumers.
The case forms part of an ongoing probe launched in October 2024 into whether the company has complied with its responsibilities as a designated Very Large Online Platform under European Union digital regulations.
The regulator’s findings were supported by a mystery shopping exercise conducted by an independent testing body.
It reportedly discovered that many chargers purchased via Temu failed basic electrical safety checks, while a significant number of baby toys contained banned chemicals or small detachable components that could pose choking hazards, according to Euronews.
Beyond the financial penalty, Temu has been ordered to submit an action plan addressing the identified issues by 28 August.
The Commission will then have two months to assess whether the proposed measures are sufficient to bring the platform into compliance.
EU tech commissioner Henna Virkkunen said the ruling was intended to send a strong signal to the company. She told reporters that it was meant to deliver a “very strong message” to Temu.
In response, a Temu spokesperson said the company accepted the importance of clear regulatory standards but argued that the decision related to conditions in 2024 and does not reflect its current safeguards.
“We disagree with the European Commission’s decision and consider the fine to be disproportionate,” they said.
“We are reviewing the decision carefully and considering all available options.”
UK consumer group Which? welcomed the EU action and urged Britain to adopt similar measures.
The organisation’s head of consumer protection policy, Sue Davies, said, “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 added, “The UK government should follow the EU’s example and make use of its new powers under the Product Regulation and Metrology Act to make online marketplaces legally responsible for dangerous products.”
The penalty marks only the second enforcement action under the EU’s Digital Services Act related to content and platform responsibility.
The first was a €120m fine imposed on X last December.
