EU Fines Temu $232 Million Over Unsafe Products

European Union regulators have fined Temu €200 million ($232 million) after an investigation found the online retailer failed to adequately protect consumers from illegal and unsafe products sold on its platform.

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The penalty, announced on Thursday, follows an EU probe that uncovered widespread risks linked to items including hazardous toys and non-compliant electronic devices. The fine was issued under the bloc’s Digital Services Act (DSA), legislation designed to force major online platforms to better police harmful content and dangerous goods.

It marks the second major penalty imposed under the DSA since the rules came into force three years ago. Last year, the EU fined X roughly $120 million.

Safety concerns uncovered

The European Commission said Temu failed to properly identify and assess the risks posed by illegal goods available on its marketplace, leaving European consumers exposed to unsafe products.

As part of the investigation, regulators conducted a “mystery shopping” exercise that uncovered numerous items that breached EU safety standards. Officials said many electronic chargers failed basic safety tests, while a high number of baby toys posed serious dangers.

According to investigators, some toys contained chemicals above permitted safety limits, while others included detachable parts that could create choking or suffocation hazards for children.

EU officials described Temu’s shortcomings in risk assessment as a particularly serious violation of the DSA.

European Commission Executive Vice-President Henna Virkkunen said risk assessments required under the law must be thorough and evidence-based.

She said Temu’s assessment underestimated the dangers linked to illegal products and failed to provide regulators or consumers with a clear picture of the scale of the risks involved.

Temu rejects ruling

Temu said it disagreed with the decision and called the fine “disproportionate.”

The company said the findings were linked to the European Commission’s first DSA review of the platform in 2024 and argued they did not reflect the current state of its systems.

In a statement, Temu said it had cooperated with regulators throughout the investigation and had since strengthened its risk assessment procedures, platform governance and consumer protection measures.

The platform has become popular globally by offering low-cost products ranging from clothing to household goods shipped directly from sellers in China.

Temu, owned by PDD Holdings, said it currently has around 92 million users across the EU. PDD Holdings also owns the Chinese shopping platform Pinduoduo.

Further action possible

The European Commission has ordered Temu to submit an action plan by the end of August outlining how it will address the issues identified during the investigation.

Failure to comply could expose the company to additional penalties, including recurring daily, weekly or monthly fines.

The case is among the EU’s most prominent efforts to enforce stricter digital regulations on major online platforms, as Brussels increases pressure on tech companies to improve consumer safety standards and oversight of products sold online.

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Adapted by ASEAN Now. Source 29 May 2026