Temu Fined by EU for Consumer Safety Violations
LONDON (AP) — Temu, the Chinese online retail platform, has been slapped with a hefty fine of 200 million euros (approximately $232 million) following an investigation by the European Union. The findings revealed that the company had not adequately safeguarded consumers from potentially harmful products, including unsafe toys and electronics.
This fine comes after preliminary discoveries last year highlighted that Temu was putting consumers at risk by selling items like infant toys and small electronics which failed to meet the EU’s consumer safety standards.
The fine was issued under the Digital Services Act (DSA), a comprehensive regulation designed to enhance safety for internet users against harmful content and questionable goods, threatening significant penalties for non-compliance.
This marks the second instance where Brussels has imposed a fine under the young DSA, following a $120 million penalty handed to Elon Musk’s social media platform, X, last year.
In response, Temu expressed its disagreement with this ruling, calling the financial penalty “disproportionate.” The company highlighted that the decision is linked to an evaluation from 2024, asserting that it does not accurately reflect their current systems.
“Temu has engaged constructively with the Commission throughout the process, and we have taken further steps to bolster risk assessment, platform governance, and user protection,” the statement read.
Temu has gained popularity for providing affordable products—from clothing to home goods—shipped directly from Chinese sellers. It boasts around 92 million users across the EU and is a part of PDD Holdings Inc., which also owns the well-known Chinese e-commerce platform, Pinduoduo.
The European Commission pointed out that Temu neglected to identify and evaluate the systemic risks posed by illegal products on its platform, thereby compromising the safety of European consumers.
Investigators conducted a “mystery shopping exercise,” uncovering a variety of “non-compliant” items, including electronic chargers that failed basic safety standards. Alarmingly, they also discovered a significant number of baby toys that presented safety hazards due to excessive levels of harmful chemicals or parts that could pose choking risks.
The commission emphasized that failing to conduct proper risk assessments constitutes a serious violation of the bloc’s digital regulations.
“These assessments must go beyond mere compliance,” stated European Commission Executive Vice-President Henna Virkunnen. She criticized Temu’s approach, noting it underestimates actual risks and lacks detailed, evidence-backed evaluations. “It leaves regulators, users, and the public unaware of the real dangers that illegal products can impose. Temu must comply with the law now,” she added.
Temu is expected to present an “action plan” by the end of August to address these issues. Failing to do so could result in additional penalties that may accrue daily, weekly, or monthly.
