The European Commission has imposed a fine of €200 million on the popular online marketplace Temu, under the Digital Services Act (DSA), citing failures to adequately assess and manage risks linked to illegal and unsafe products on its platform.
The Commission said the company failed to properly identify, analyse and evaluate systemic risks connected to illegal goods sold to consumers across the European Union.
Unsafe products flagged in EU investigation
According to the European Commission, evidence shows that EU consumers are highly likely to encounter illegal or unsafe items on the Temu platform.
As part of its investigation, the Commission carried out mystery shopping tests on selected products. Some items, including chargers, were found to fail basic safety standards, with officials reporting cases of overheating and fire risks.
Concerns were also raised over children’s toys, including rattles and small items, which reportedly posed choking hazards due to detachable parts and potentially dangerous chemicals.
Broad failures in risk assessment
The EU fine on Temu is based on findings that the platform’s risk assessment for 2024 relied on general industry information rather than specific analysis of its own services.
The Commission said this approach failed to meet requirements under the Digital Services Act for Very Large Online Platforms, which must conduct detailed risk evaluations and implement effective mitigation measures.
Officials also criticised Temu’s failure to assess how its recommendation systems and influencer-driven promotions may amplify the spread of illegal products.
Systemic issues, not isolated cases
EU authorities stressed that the issue is not limited to individual products but reflects broader deficiencies in platform controls.
Officials said the core concern is whether Temu has effective systems in place to detect and remove illegal goods before they reach consumers.
The EU fine on Temu therefore reflects what regulators described as a systemic failure in platform governance.
Compliance deadline and next steps
Temu has been given until 28 August 2026 to submit an action plan outlining how it will address the violations and strengthen its risk assessment framework.
The European Commission said the plan must include a “state-of-the-art” risk assessment supported by scientific evidence and stronger controls over products and sellers.
Further review will follow, with additional scrutiny from the European Board for Digital Services before a final decision is taken.
Potential for further sanctions
The Commission noted that under the Digital Services Act, fines can reach up to 6% of a company’s global turnover.
While the current fine is set at €200 million, officials stressed that this does not represent the maximum penalty and further sanctions remain possible if compliance is not achieved.
The Commission also confirmed that additional investigations into Temu’s recommendation systems and “addictive design” practices are still ongoing.
Source: CNA
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