Temu has been fined $232 million by European Union regulators for failing to adequately prevent the sale of illegal and unsafe products on its marketplace.
The European Commission announced the penalty on Thursday, saying the Chinese e-commerce giant breached obligations under the Digital Services Act (DSA), which requires major online platforms to manage systemic risks linked to their services.
According to the Commission, its investigation—opened in 2024 after Temu expanded rapidly across Europe—found that the company did not properly identify or mitigate risks associated with products sold to EU consumers. The probe was triggered by complaints from the European Consumer Organisation (BEUC) and 17 national consumer bodies, which raised concerns over unsafe goods circulating on the platform.
Regulators also conducted mystery shopping exercises, during which several products failed basic safety standards. These included phone chargers that did not meet electrical safety requirements and baby toys found to contain hazardous chemicals or pose choking risks.
The EU further argued that Temu failed to properly assess how its recommendation systems and promotional tools, including influencer-driven content, could amplify exposure to unsafe products.
European Commission official Henna Virkkunen criticised the company’s compliance approach, saying its risk assessment “leaves regulators, users, and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu.” She added: “Now it is time for Temu to comply with the law.”
Temu has been ordered to submit a compliance plan by August 28, 2026, which will be reviewed by the Commission two months after submission to determine whether the company has met its obligations.
In response, Temu rejected parts of the findings and described the fine as excessive. A company spokesperson said it “respects the objectives of the Digital Services Act and the need for clear, consistent rules across the digital economy,” but disagreed with the ruling, calling the penalty “disproportionate.”
The company maintained that the decision relates to its initial 2024 assessment and does not reflect its current systems. It added that it has since strengthened its risk controls, platform governance, and user protection measures, and will continue engaging with regulators.
The penalty marks the second enforcement action under the Digital Services Act and the largest fine imposed under the law so far. The first was issued against X over transparency-related breaches.
The DSA requires large online platforms to actively identify and reduce systemic risks, improve oversight of illegal content and goods, and provide clearer explanations of how recommendation systems operate.
The wider investigation also highlighted growing EU concerns over low-cost imports from China, with regulators increasingly scrutinising major online marketplaces as part of broader consumer protection and trade enforcement efforts.
Other platforms remain under investigation, including Shein and AliExpress, both of which are facing scrutiny over allegations of unsafe or counterfeit goods. Separately, JD.com is under review over its planned acquisition of German retailer Ceconomy, amid concerns about potential foreign subsidies distorting competition.
The issue has also spilled into global trade policy. In the United States, Temu recently halted direct shipments from China following changes to import rules that removed a key duty exemption on low-value goods.
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