The European Commission has imposed a €200 million fine on Chinese-owned online retailer Temu for allowing the sale of illegal products, including dangerous baby toys and defective chargers.
"The company failed to diligently identify, analyse and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union," the European Commission said in a statement.
It added that the evidence indicates that consumers in the EU are very likely to encounter illegal items on Temu.
The commission said that a 2024 risk assessment conducted by Temu fell short of the standards laid out in the Digital Services Act (DSA).
"It seriously underestimated how often EU consumers are likely to encounter illegal items," the commission said.
"Evidence from a mystery shopping exercise included in the commission's investigation shows that a very high percentage of the selected chargers failed basic safety tests, while a high percentage of tested baby toys posed safety risks of medium to high severity, as they contain chemicals exceeding legal safety limits or pose suffocation hazards due to detachable parts," it added.
According to the EU, Temu did not properly assess how the design of its service, including recommender systems and product promotion programmes by affiliated influencers, could amplify dissemination risks of illegal products.
Under the DSA, designated Very Large Online Platforms (VLOPs) are required to diligently assess systemic risks linked to their services and adopt corresponding mitigation measures.
Temu now has until 28 August 2026 to submit an action plan to the commission that sets out measures to remedy the breach of its risk-assessment obligations.
The European Board for Digital Services will have one month from receipt of the plan to issue its opinion.
Henna Virkkunen, European Commission Executive Vice-President for Tech Sovereignty, Security and Democracy, said that risk assessments are not box‐ticking exercises, they are the backbone of the DSA.
"Temu's risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive," Ms Virkkunen said.
"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," she added.
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A spokesperson for Temu said it respects the objectives of the DSA and the need for clear, consistent rules across the digital economy.
"However, we disagree with the European Commission's decision and consider the fine to be disproportionate," the company said.
"The decision relates to our first DSA assessment in 2024 and does not reflect the current state of our systems. Temu engaged constructively with the commission throughout the process and has since taken further steps to strengthen risk assessment, platform governance, and user protection.
"We will continue to engage with regulators in good faith and work toward a marketplace that serves consumers, businesses, and communities responsibly.
"We are reviewing the decision carefully and considering all available options," Temu said.
Digital Services Act finally baring its teeth - Andrews
Fianna Fáil MEP for Dublin Barry Andrews welcomed the fine and said "this is the Digital Services Act finally baring its teeth".
Speaking on RTÉ's Drivetime, Mr Andrews said he has been campaigning to raise awareness around "the dangers to the environment, the dangers to labour rights, dangers to consumer safety associated with these very large online platforms, particularly Temu and Shein".
"I think it is really welcome. These online platforms just don’t carry out sufficient risk assessment in my opinion and this is borne out by the judgment of the European Union on this case," he said.
Asked about the affordability of the low-cost items sold by companies like Temu, he said he was somewhat sympathetic but felt it was a "false economy" as if people pay a little bit more for items that last longer.
"The reality is these are not sustainable products from an environmental point of view and they’re not durable from a consumer point of view," he said.
