The European Union has fined Chinese-owned e-commerce platform Temu €200 million ($232 million) for selling illegal and unsafe products across its marketplace.
EU regulators said the company failed to properly identify, assess, and manage risks linked to harmful goods being sold to consumers within the bloc. Items flagged included unsafe baby toys and faulty electrical chargers.
According to officials, users in the EU were highly exposed to prohibited listings, and Temu underestimated the scale of the problem on its platform.
“The company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union,” the EU said.
Temu, which entered the European market in 2023 and now serves about 130 million users, has faced growing scrutiny since an investigation began in 2024 under the Digital Services Act, which requires large platforms to actively manage risks tied to illegal content and goods.
EU tech commissioner Henna Virkkunen described Temu as a major player in the European market, stressing that its size made compliance obligations especially important.
The European Commission said Temu’s 2024 risk assessment did not meet required standards, citing examples such as baby rattles containing chemicals above legal limits and chargers that failed safety checks.
Regulators also found that the company did not adequately assess how its platform design could contribute to the spread of illegal products.
Under EU law, penalties can reach up to 6 percent of a company’s global annual turnover. Temu reportedly generated $61.7 billion in revenue last year.
Officials said the €200 million penalty reflects the scope of violations identified in a single assessment cycle, though the fine could have been higher.
Temu has been ordered to pay the fine and submit a compliance plan by August 28, outlining corrective measures. Failure to comply could result in additional sanctions, and the company still has the option to appeal.
The EU is also continuing investigations into other potential breaches, including concerns about addictive platform design and recommendation systems.
