Chinese retail giant Temu has been fined £173 million by the European Union for selling dangerous products, including baby gear and electrical items. The penalty, the highest ever imposed under the EU's Digital Services Act (DSA), follows an investigation that uncovered a range of hazardous goods.
Investigation Findings
Undercover investigators found baby toys containing chemicals above legal limits and phone chargers that failed basic safety checks. The EU accused Temu of failing to protect consumers by profiting from unsafe products.
Company Response
Temu stated it disagrees with the decision and called the fine disproportionate. The company, which has 13 million active users in the UK and 130 million in the EU, must submit an action plan by the end of August to address the issues. Non-compliance could result in additional daily, weekly, or monthly fines.
EU Commissioner's Statement
EU tech commissioner Henna Virkunnen criticized Temu's risk assessment, saying it "underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive." She added that the company must now comply with the law.
Background
The fine follows reports from European consumer groups about hazardous products on Temu, including dummy chains long enough to strangle a child and jewelry containing lead. Temu has been under investigation since October 2024 over its obligations as a Very Large Online Platform under the DSA. Its parent company, PDD Holdings, reported global revenues of £40 billion in 2024.
