The European Union has fined Chinese online marketplace Temu €200 million ($232 million) after regulators concluded the company failed to stop the sale of illegal and unsafe products to European consumers. The penalty is one of the largest enforcement actions taken under the EU’s Digital Services Act (DSA).
According to the European Commission, Temu did not adequately identify, assess, or reduce the risks posed by illegal products sold through its platform. Investigators found that consumers in the EU faced a high likelihood of encountering unsafe goods, including hazardous toys, defective electronics, and products that violated European safety standards.
The fine follows a nearly two-year investigation that began in 2024 after consumer protection groups and regulators raised concerns about product safety and marketplace oversight on Temu. EU authorities conducted test purchases and reviews of listings, uncovering numerous examples of products that failed to comply with safety regulations. Investigators reportedly found baby toys containing prohibited chemicals, small parts posing choking hazards, and electronic chargers that failed safety requirements.
Regulators also criticized Temu’s internal risk assessments, saying the company underestimated how frequently illegal products appeared on the platform. The European Commission further argued that recommendation systems and influencer-driven promotions may have amplified the visibility of non-compliant products to consumers.
Temu disputed the decision and described the fine as disproportionate. The company said the findings rely heavily on earlier assessments and do not reflect changes it has made to improve compliance, product monitoring, and consumer protection systems. Temu stated it will continue cooperating with European regulators while reviewing potential legal options.
The company has until late August to submit a corrective action plan outlining how it intends to address the violations identified by regulators. Failure to satisfy EU requirements could result in additional penalties and closer regulatory scrutiny.
The case represents only the second major fine issued under the Digital Services Act, the EU’s flagship law designed to force large online platforms to take greater responsibility for illegal content, harmful products, and systemic risks on their services. Under the legislation, companies can face fines of up to 6% of global annual revenue for serious violations.
Temu has grown rapidly across Europe since entering the market in 2023, attracting millions of users through low-cost products shipped directly from sellers in China. Regulators have increasingly focused on the platform’s scale, warning that weak oversight can expose large numbers of consumers to unsafe or prohibited goods.