Chinese-owned e-commerce platform Temu has been fined €200 million ($232 million) by European Union regulators after an investigation found the company failed to adequately prevent the sale of illegal and potentially dangerous products on its marketplace.
The penalty, issued under the EU’s Digital Services Act (DSA), is the largest sanction imposed so far under the legislation. European authorities said the company did not properly assess or mitigate the risks posed by unsafe products being offered to consumers across the bloc.
Regulators pointed to concerns involving hazardous baby toys, defective electronic chargers, and other items that failed to meet European safety standards. Investigators reportedly conducted test purchases that uncovered a significant number of products posing potential risks to consumers.
The European Commission also raised concerns about Temu’s recommendation systems and promotional mechanisms, arguing that they may have increased the visibility of non-compliant products on the platform.
In response, Temu said it disagrees with the decision and described the fine as disproportionate. The company stated that it has already implemented improvements to its compliance, risk assessment, and consumer protection systems and is considering its legal options.
EU authorities have given the company until late August to submit a corrective action plan outlining how it intends to address the identified shortcomings. Failure to comply could expose the platform to additional penalties as investigations into other aspects of its operations continue.
The case highlights increasing scrutiny of major online marketplaces as regulators seek to strengthen consumer protection and ensure safer digital shopping environments across Europe.