EU Slaps Temu with Record 200 Million Euro Fine for Failing to Curb Illegal Products

Investigations also found that baby toys offered on the platform presented high safety risks, including chemical levels exceeding all EU legal limits and detachable parts that could cause choking.

Dangerous Products Found

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 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 classified as a very large marketplace by the EU Commission in 2024, subjecting it to stricter rules under the DSA. The law, which entered into force in 2022, requires operators with more than 45 million monthly active users in the EU to systematically identify and mitigate potential risks.

The fine against Temu 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's Response and Next Steps

Temu operator Whaleco stated that 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 must submit a plan by the end of August outlining how it will remedy the deficiencies to comply with European digital laws. If Temu fails to comply, further penalty payments are threatened.

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.

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.