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

According to the EU's executive arm, consumers in the European Union are offered illegal products on Temu far too frequently. These include counterfeit, dangerous, toxic or otherwise environmentally harmful goods.

The Commission based its findings on its own investigations, studies by consumer protection organizations and test purchases. In those tests, a high percentage of chargers and small electronics failed basic safety checks, while baby toys presented high safety risks from chemical levels exceeding EU limits and detachable parts that could cause choking.

Dangerous Toys and Faulty Electronics

EU Commission Vice President Henna Virkkunen sharply criticized the company's compliance efforts. "Risikobewertungen sind keine Box-Ticking-Übungen – sie sind das Rückgrat des Gesetzes über digitale Dienste," she said, adding that Temu's risk assessment "unterschätzt konkrete Risiken, es fehlt ihr an Spezifität, sie stützt sich nicht auf solide Beweise und ist nicht umfassend."

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 must now submit an action plan by August 28, 2026, outlining how it will remedy the deficiencies. The European Board for Digital Services will then have one month to issue its opinion, after which the Commission will decide whether the measures are sufficient. If not, further penalty payments can be imposed.

Temu's Response and Next Steps

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

The company can either challenge the fine before European courts or accept it. Under the DSA, fines of up to 6 percent of global annual revenue can be imposed.

Wider Crackdown on Online Marketplaces

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

The DSA, which entered into force in 2022 and has been in effect since February 2024, requires large online platforms to comply with stricter rules to better protect users and remove illegal content more quickly. A larger number of extensive proceedings from the early phase of the DSA are still pending.

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