The European Commission has imposed a €200 million fine on the Chinese online marketplace Temu for failing to adequately identify and assess risks associated with illegal and unsafe products sold on its platform. This decision, announced on May 28, highlights significant concerns regarding consumer safety in the European Union.
The Commission found that Temu was in violation of the Digital Services Act (DSA), which governs the responsibilities of online intermediaries and platforms in preventing illegal activities. The investigation revealed that consumers in EU countries frequently encounter illegal products on Temu, with a concerning percentage of selected chargers failing basic safety tests and many tested children’s toys posing medium to high safety risks.
Additionally, the Commission noted that Temu did not sufficiently evaluate how the design of its service could exacerbate the risks associated with the distribution of illegal products. Under EU legislation, large online platforms are required to conduct thorough assessments of systemic risks linked to their services and implement appropriate measures.
Henna Virkkunen, the Commission’s Vice President for Technological Sovereignty, Security, and Democracy, emphasized that risk assessment is fundamental to the Digital Services Act, stating, “The risk assessment conducted by Temu underestimates specific risks, lacks substantial evidence, and is not comprehensive. It leaves regulators, users, and the public unaware of the true scale of potential harm posed by illegal products sold on Temu. It is now time for Temu to comply with the law.”
“The risk assessment conducted by Temu underestimates specific risks, lacks substantial evidence, and is not comprehensive. It leaves regulators, users, and the public unaware of the true scale of potential harm posed by illegal products sold on Temu. It is now time for Temu to comply with the law,” added the official.
Temu has the right to appeal the fine and must submit a plan to the European Commission by August 28, detailing how it intends to address the identified violations. In November 2024, the European Union initiated formal legal proceedings against Temu due to the sale of illegal products online, raising concerns about counterfeit goods, pharmaceuticals, cosmetics, and toys.
The European Commission has fined Temu €200 million for failing to manage risks associated with illegal products on its platform, highlighting consumer safety concerns. The company has until late August to address these violations or face further legal action.