Europe Fines Temu €200 Million Over Consumer Safety Failures
The European Commission has imposed a €200 million ($232 million) fine on the Chinese online retailer Temu for failing to comply with the Digital Services Act (DSA). An investigation found that Temu did not adequately protect consumers from illegal products, including unsafe electronics and hazardous toys.
Investigation and Findings
The European Commission’s investigation, which included a "mystery shopping exercise," identified non-compliant products on the platform. These included electronic chargers that failed safety tests and baby toys posing chemical or choking hazards.
The Commission stated that Temu’s risk assessment, submitted in October 2024, was insufficient and lacked specificity, potentially leading to inadequate measures against the dissemination of illegal products. Regulators determined that the risk assessment did not adequately inform the public or authorities of the potential harm from such goods.
Company Response
Temu disagreed with the Commission’s decision, characterizing the fine as "disproportionate." The company stated that the findings refer to a 2024 evaluation and do not reflect its current systems. Temu noted that it has since taken additional steps to improve risk assessment and user protection.
Regulatory Context
"The risk assessment was not a 'box-ticking exercise'—Temu must comply with the law."
— European Commission Executive Vice-President Henna Virkkunen
Separately, France has called for stronger measures against Chinese online platforms following similar allegations against other companies, including AliExpress and Shein.
Required Actions and Potential Penalties
Temu has been required to submit an "action plan" by the end of August 2026 to address the sale of illegal products on its platform. Failure to comply could result in additional fines of up to 6% of the company’s annual global revenue, potentially levied on a daily, weekly, or monthly basis. The fine relates specifically to compliance measures; separate probes into specific products are ongoing.
Background
Temu, owned by PDD Holdings Inc. (which also operates the Chinese e-commerce site Pinduoduo), entered the European market in 2023. The platform has 92 million users in the EU and is known for offering low-priced goods, including clothing and electronics, shipped from China.
Starting in July 2026, the EU will impose a flat €3 fee on e-commerce parcels valued under €150, a policy that may affect Temu’s business operations in Europe.