EU regulators have fined Chinese shopping website Temu €200 million (£173 million) for failing to stop the sale of illegal and dangerous products. The penalty, imposed under the Digital Services Act (DSA), follows a 19-month investigation by the European Commission.
The investigation found that consumers were highly likely to encounter unsafe items on the platform, including baby toys with choking hazards, dummy chains that could strangle, jewellery containing lead, clothes with banned chemicals, and chargers posing risks of burns or fire. An unpublished mystery shopping exercise revealed a 'high percentage' of unsafe baby products and a 'very high percentage' of dangerous chargers.
The commission also criticised Temu's website design, noting that recommender systems and influencer promotions could amplify the dissemination of illegal products. The €200m fine is the highest ever imposed under the DSA, surpassing a €120m penalty on Elon Musk's X in December 2024.
A senior EU official stated that Temu's 2024 risk assessment was inadequate, constituting a serious breach of the DSA. The fine represents a fraction of Temu's revenues; its parent company, PDD Holdings, reported global revenues of $54 billion in 2024. Under the DSA, fines can reach up to 6% of global turnover.
Temu, which has 130 million EU consumers, said it disagrees with the decision and considers the fine disproportionate. A spokesperson noted that the decision relates to their first DSA assessment in 2024 and does not reflect current systems. Temu has until 28 August to submit an action plan to address the issues.
