EU Commission Fines Temu €200 Million for Failing to Assess Risks of Illegal Products

Dangerous Products Found in Test Purchases

The Commission's findings were supported by its own investigations, studies from consumer protection organizations, and test purchases. These revealed that a very high proportion of small electronics and chargers sold on Temu failed basic safety tests. Baby toys offered on the platform posed high safety risks, including chemical levels exceeding all EU legal limits and detachable parts that could cause children to choke.

According to the EU Commission, consumers in the European Union are offered illegal products on Temu far too frequently. The illegal products include counterfeit, dangerous, toxic, or otherwise environmentally harmful goods. The Commission criticized Temu's business model, stating that partially non-transparent recommendation systems and influencer advertising could further amplify the spread of illegal products.

Temu operator Whaleco stated it respects the DSA but considers the Commission's decision incorrect and the penalty disproportionate. A Whaleco spokesperson said the matter concerns the past and does not reflect the current state, and that Temu has since taken further steps to improve risk assessment and consumer protection.

Temu Disputes the Decision

The company's risk assessment report for 2025 is publicly accessible and goes significantly beyond the 2024 version, according to sources familiar with the case. Temu can either challenge the fine before European courts or accept it.

Under Article 34 of the DSA, operators of very large online platforms and marketplaces with more than 45 million monthly active users in the EU must systematically identify and mitigate potential risks. The DSA, which entered into force in 2022 and has been in effect since February 2024, aims to oblige large online platforms to follow stricter rules to better protect users and remove illegal content more quickly.

This is only the second time a violation of the Digital Services Act has been punished with a fine. The first DSA fine was a 120 million euro penalty against platform X in December 2025. A larger number of extensive proceedings from the early phase of the DSA are still pending.

Broader DSA Enforcement

Proceedings under the Digital Services Act are also ongoing against Temu's competitor Shein, also from China. The proceedings against Shein primarily concern an addictive platform design that allegedly prevents EU users from making informed purchasing decisions.

Temu must submit a plan by 28 August 2026 outlining how it will remedy the deficiencies and comply with European digital laws. The European Board for Digital Services then has one month to issue its opinion. Within one month of receiving that opinion, the Commission decides whether the measures in the action plan are sufficient to end the infringement or provide remedy.

Next Steps and Potential Penalties

If the action plan is insufficient, further penalty payments can be imposed. Under the Digital Services Act, fines of up to 6 percent of global annual revenue can be imposed, along with enforcement measures to remedy acute violations.

According to an evaluation by the Federation of German Consumer Organizations (VZBV), the five largest shopping platforms in Germany removed almost 70 million items in November 2025 alone. 30 million of the removed items were classified as 'unsafe' or 'banned'.