- The European Union has fined Temu €200 million for violating the Digital Services Act.
- Investigators found unsafe chargers and hazardous baby toys listed on the platform.
- Regulators said Temu underestimated risks linked to product recommendations and influencer promotions.
- The company must submit a compliance plan by August 28, 2026, or face additional penalties.
Chinese ecommerce giant Temu has been hit with a €200 million fine by the European Union after regulators concluded that the platform failed to adequately prevent the sale of illegal and potentially dangerous products to consumers.
The penalty marks only the second major enforcement action under the Digital Services Act (DSA), the European Union’s landmark legislation aimed at improving online safety and accountability. It is also the first DSA case focused specifically on physical consumer products rather than digital services.
European officials said their investigation uncovered a range of unsafe items being sold through the marketplace, including electronic chargers that failed essential safety requirements and children’s toys that posed serious risks to young users.
Safety Concerns Trigger Regulatory Action
The European Commission launched its investigation after conducting undercover purchases on the platform. Through a series of mystery shopping exercises, regulators identified products that failed to meet European safety standards.
Among the products flagged were electrical chargers that did not pass basic safety checks. Investigators also found baby toys containing potential hazards, including toxic substances and components that could create choking or suffocation risks.
According to regulators, these findings raised significant concerns about Temu’s ability to identify, assess, and remove dangerous products before they reached consumers.
The Commission argued that the platform’s safeguards were insufficient and that its risk management processes failed to address known threats effectively. Officials stressed that online marketplaces operating in the EU are expected to actively monitor and mitigate risks associated with products sold through their services.
EU Says Temu Underestimated Platform Risks
Beyond the sale of unsafe goods, European authorities also criticized Temu’s broader approach to risk assessment.
Regulators claimed that the company did not properly evaluate how its recommendation algorithms and influencer marketing activities could contribute to the visibility and spread of illegal products.
EU Executive Vice President for Tech Sovereignty, Security and Democracy, Henna Virkkunen, said Temu’s assessment failed to accurately reflect the real risks present on the platform. She noted that the company’s analysis lacked sufficient evidence, detail, and scope to address the challenges associated with product safety and compliance.
The Commission believes that recommendation systems can play a significant role in promoting products to consumers. If dangerous or prohibited items gain visibility through those systems, the risks can increase rapidly across large user bases.
As a result, regulators concluded that Temu’s existing measures fell short of the standards required under the Digital Services Act.
Temu Pushes Back Against the Decision
Temu has strongly disputed the size of the penalty, describing the fine as disproportionate.
In response to the ruling, the company said it remains committed to working with European regulators and maintaining a responsible marketplace for consumers and businesses. Temu also emphasized that the decision relates to an earlier DSA risk assessment conducted in 2024 and does not accurately represent the platform’s current systems and procedures.
The company stated that it has spent the past two years strengthening its governance framework, improving risk assessments, and enhancing consumer protection measures.
Temu added that it is carefully reviewing the decision and considering its next steps, including possible legal and regulatory options.
Compliance Deadline Looms
The European Commission has ordered Temu to submit a formal action plan by August 28, 2026, outlining how it will address the issues identified during the investigation.
The requirement falls under Article 75 of the Digital Services Act. Failure to comply could expose the company to additional penalties and increased regulatory scrutiny.
The case highlights the EU’s growing willingness to hold major online platforms accountable not only for digital content but also for the physical products sold through their marketplaces. As enforcement of the DSA continues to expand, online retailers operating in Europe are likely to face greater pressure to strengthen product safety controls and improve transparency across their platforms.
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