EU Commission Slaps Temu with Record 200-Million-Euro Fine Over Illegal Products

According to the 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 findings are based on the Commission's own investigations, studies by consumer protection organizations, and test purchases.

In those test purchases, a high percentage of 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 choking. A mystery shopping investigation found that buyers were offered products that violated EU safety standards.

Dangerous Goods in Focus

The Commission also criticized Temu's business model, stating that partially non-transparent recommendation systems and influencer advertising could further amplify the spread of illegal products. Temu was required to analyze and minimize potential consumer harm and to ban corresponding merchants, but the Commission found its efforts lacking.

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.

The 200 million euro fine is the highest penalty ever imposed on a marketplace operator under the DSA. It is only the second time a violation of the Digital Services Act has been punished with a fine, following a 120 million euro penalty against platform X in December 2025.

What the DSA Requires

The DSA, which entered into force in 2022 and has been in effect since February 2024, aims to oblige large online platforms to stricter rules to better protect users and remove illegal content more quickly. Under Article 34, 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.

Temu was classified as a very large marketplace by the EU Commission in 2024. The fine was issued based on its 2024 risk assessment. Temu's 2025 risk assessment report is publicly accessible and reportedly goes significantly beyond the 2024 version.

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

Next Steps and Wider Implications

If the action plan is insufficient, further penalty payments can be imposed. Under the DSA, fines of up to 6 percent of global annual revenue can be imposed, with the amount determined by the severity of the violation and the company's annual revenue.

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

A larger number of extensive DSA proceedings from the early phase of the regulation are still pending. The DSA also allows for enforcement measures to remedy acute violations. Temu can either challenge the fine before European courts or accept it.