European Union fines Temu 200 million euros for product safety failures

The European Commission has imposed a 200 million euro fine on the Chinese e-commerce platform Temu, following an investigation that found the company allowed the sale of illegal and unsafe products within the European Union.

The commission identified hazardous items, including dangerous toys for babies and defective electronic devices, posing risks to consumers. The ruling stated, "The company failed to diligently identify, analyze, and assess the systemic risks related to the sale of illegal products on its platform, as well as the resulting harm to EU consumers."

This action was taken under the Digital Services Act (DSA), a regulation aimed at creating a safer digital environment. Temu, which has between 92 and 130 million active users in Europe, allegedly breached its consumer protection obligations applicable to large online platforms. A key piece of evidence was a "mystery shopping" exercise conducted by EU supervisory teams, which confirmed that a significant percentage of electrical chargers failed basic safety tests, and choking hazards were found in toys.

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The company failed to diligently identify, analyze, and assess the systemic risks related to the sale of illegal products on its platform, as well as the resulting harm to EU consumers.

Henna Virkkunen, Executive Vice-President of the European Commission, noted that Temu's submitted reports lacked technical specificity and solid evidence, leaving regulators and the public unaware of potential product dangers. The Commission emphasized that these omissions constitute a serious violation of digital safety rules, prioritizing legal compliance and consumer safety over low prices.

Temu has expressed disagreement with the decision, labeling the sanction as "disproportionate." In an official statement, the company argued that the Commission's conclusions are based on an outdated 2024 assessment that does not reflect the current state of its internal control systems.

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The company failed to diligently identify, analyze, and assess the systemic risks related to the sale of illegal products on its platform, as well as the resulting harm to EU consumers.