The European Commission has imposed a €200 million fine on Chinese e-commerce platform Temu after an investigation revealed widespread availability of dangerous baby toys and faulty chargers. The penalty, announced on Thursday, stems from Temu's failure to comply with the Digital Services Act (DSA), which requires designated Very Large Online Platforms to conduct thorough risk assessments and mitigate harm to consumers.
Under the DSA, platforms like Temu must proactively identify and address risks posed by illegal or unsafe products. The Commission's investigation, launched in October 2024, included a mystery shopping exercise carried out by an independent testing organization. Results showed that a high percentage of chargers purchased through Temu failed basic electrical safety tests, while a significant proportion of baby toys posed medium to high safety risks. These toys contained chemicals above legal limits or featured small detachable parts that could cause suffocation.
Platform Design Under Scrutiny
The Commission also criticized Temu for failing to consider how its own platform design amplifies the spread of unsafe products. Investigators noted that recommender algorithms and influencer-led promotional programs may actively boost the visibility of illegal listings—a dimension Temu had not properly examined in its risk assessment.
Henna Virkkunen, the EU Commission’s executive vice-president for tech sovereignty, security and democracy, emphasized the seriousness of the breach. “Risk assessments are not box-ticking exercises—they are the backbone of the DSA,” she said. “Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive. 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.”
The fine is part of a broader EU effort to enforce the DSA, which came into full effect in 2024. The regulation imposes strict obligations on large platforms to protect consumers from illegal content and unsafe goods. Temu, which has rapidly expanded its presence across Europe, including in markets like Germany, France, and Poland, now faces a deadline of 28 August 2026 to submit an action plan detailing how it will remedy its risk-assessment failures. The European Board for Digital Services will review the plan within one month, after which the Commission will have a further month to adopt a final decision and set a timeline for implementation.
If Temu fails to comply with the non-compliance decision, it could face additional periodic penalty payments on top of Thursday's fine. The Commission said it would continue to engage with the company to monitor its adherence to the DSA more broadly.
The case highlights ongoing tensions between European regulators and Chinese e-commerce giants. Similar concerns have been raised about other platforms, such as Shein, which also faces scrutiny over product safety. The EU's stance is part of a wider trend of tightening regulations on digital marketplaces, as seen in recent actions against Chinese carmakers and other sectors.
For European consumers, the fine serves as a reminder of the risks associated with cross-border online shopping. The Commission's action underscores its commitment to enforcing safety standards, even as platforms like Temu continue to grow in popularity across the continent.
