Temu has been fined €200m (£173m) by the European Commission for failing to properly assess and reduce the risk of illegal and dangerous products being sold through its marketplace.
The penalty, issued under the EU’s Digital Services Act, follows a 19-month investigation into the Chinese ecommerce giant, which has grown rapidly across Europe since entering the market in 2023.
Brussels said Temu had failed to do enough to tackle the “systemic risks of illegal products being offered on its platform and the resulting harm to consumers”.
Under the DSA, large online platforms are required to assess and mitigate risks linked to illegal content and products. The European Commission said Temu’s 2024 risk assessment was inadequate, lacked solid evidence and failed to properly reflect the scale of potential harm to consumers.
An unpublished mystery shopping exercise carried out for the commission reportedly found a high proportion of unsafe baby products and a very high proportion of dangerous chargers available on the platform. Regulators also raised concerns over unsafe clothes and jewellery.
Consumer groups across Europe have previously warned that products listed on Temu included baby toys with choking hazards, dummy chains long enough to pose strangulation risks, jewellery containing dangerous metals such as lead, clothing made with banned chemicals and chargers that could cause burns, electric shocks or fires.
The commission also criticised Temu’s platform design, warning that recommender systems and influencer promotions could amplify the visibility and spread of illegal products.
European Commission executive vice-president Henna Virkkunen, who leads on tech regulation, said Temu’s risk assessment “underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive”.
She added: “It leaves regulators, users and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu. Now it is time for Temu to comply with the law.”
The fine is the second penalty issued under the DSA and the largest to date. It follows a €120m fine against Elon Musk’s X last December over verification badges and advertising transparency.
Temu has until 28 August to submit an action plan to the commission setting out how it will remedy the failings and comply with the rules. Under the DSA, companies can be fined up to 6 per cent of global annual turnover for breaches.
The platform, owned by PDD Holdings, has become one of Europe’s fastest-growing shopping apps, attracting 130 million consumers across the bloc. Its parent company reported global revenue of $54bn (£40bn) in 2024, although this includes revenues from Chinese ecommerce platform Pinduoduo.
Temu’s growth has been driven by a low-cost model that ships goods directly from Chinese warehouses to western consumers. Its ultra-cheap products, ranging from clothing and homeware to electronics and accessories, have put pressure on local retailers and raised growing concern among regulators.
From July, the EU is introducing a flat customs duty of €3 per item on ecommerce parcels valued under €150, as part of wider efforts to reduce the flow of low-value imports from China.
The European Commission is also conducting a separate investigation into whether Temu has actually been selling illegal products, including toys and electrical devices that fail to meet EU safety standards. Other probes into issues including addictive design and data access for independent researchers are continuing.
The crackdown comes as European regulators step up scrutiny of China-based ecommerce platforms. Shein and AliExpress are also facing investigations, while France has been pushing for tougher action against platforms accused of selling dangerous goods.
Temu said it disagreed with the commission’s decision and described the fine as “disproportionate”.
A spokesperson said: “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.
“The decision relates to our first DSA assessment in 2024 and does not reflect the current state of our systems. Temu engaged constructively with the commission throughout the process and has since taken further steps to strengthen risk assessment, platform governance, and user protection.”
The company said it was reviewing the decision and considering all available options.
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