Online retailer Temu has been hit with a €200 million (£175 million) fine imposed by the European Commission for failing to stop the sale of allegedly dangerous products. The Chinese-owned retailer was penalised for selling faulty chargers and unsafe baby toys on its app.
European Commission's Findings
The European Commission stated that Temu had “failed to diligently identify, analyse and assess the systemic risks” of the products and the harm they could cause to consumers. The 19-month investigation revealed that some baby toys posed safety risks and many chargers failed electrical safety tests.
European Commission Vice-President Henna Virkkunen said: “Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive. It leaves regulators, users and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu. Now it is time for Temu to comply with the law.”
Temu's Response
A Temu spokesperson responded: “We disagree with the European Commission's decision and consider the fine to be disproportionate. We are reviewing the decision carefully and considering all available options.” The company says the fine relates to 2024 and that it has since improved its systems. Temu has until August 28 to address the failures and pay the fine.
Broader Controversies
Temu is no stranger to controversy. A 2023 report by the US House Select Committee highlighted an “extremely high risk” of forced labour in the company’s supply chains. It also has a legal battle with rival Shein over alleged copyright infringement. In 2023, five Temu ads were banned in the UK by the Advertising Standards Authority for showing a young girl in a bikini. Last year, a three-year-old girl’s hair was ripped out by an electric brush bought on Temu; the company expressed concern and wished the child a full recovery.
Consumer Advocacy
Sue Davies, Which? Head of Consumer Protection Policy, said: “The EU’s decision to fine Temu to the tune of €200 million is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms. Countless Which? investigations have exposed how Temu and other platforms seem unwilling to exercise sufficient due diligence to protect their users from unsafe products.”
Company Background
Temu, originally short for “Team Up, Price Down,” was founded by Colin Huang in 2022 and now operates in 90 countries. His wealth is estimated at between $33 billion and $44 billion (£32 billion). Temu’s parent company, PDD Holdings, had global sales of £40 billion in 2024. In terms of its business model, it is most often compared to Amazon since it allows vendors to sell and ship directly to consumers.
Regulatory Context
The €200 million fine is one of the biggest ever imposed under the EU’s Digital Services Act. Elon Musk’s X was fined last year for “deceptive” verification badges and lack of transparency over advertising.
