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

The findings were based on the Commission's own investigations, studies by consumer protection organizations, and test purchases. A very high proportion of small electronics and chargers sold on Temu failed basic safety tests during these purchases.

Dangerous Toys and Faulty Electronics

Baby toys offered on the platform posed particularly high safety risks. Tests revealed chemical levels exceeding all EU legal limits and detachable parts that could cause children to choke.

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 risks. Temu was classified as a very large marketplace by the EU Commission in 2024.

The Commission concluded that Temu's 2024 risk assessment underestimated concrete risks, lacked specificity, was not based on solid evidence, and was not comprehensive. EU Commission Vice President Henna Virkkunen stated: "Risikobewertungen sind keine Box-Ticking-Übungen – sie sind das Rückgrat des Gesetzes über digitale Dienste."

Virkkunen added: "Die Risikobewertung von Temu unterschätzt konkrete Risiken, es fehlt ihr an Spezifität, sie stützt sich nicht auf solide Beweise und ist nicht umfassend." She said it is time for Temu to comply with the laws.

Temu Disputes the Findings

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. The company was required to analyze and minimize potential consumer harm and to ban corresponding merchants.

Temu operator Whaleco stated 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, and that Temu has since taken further steps to improve risk assessment and consumer protection.

Temu must now submit an action plan by August 28, 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 plan, after which the Commission will decide whether the measures are sufficient.

What Happens Next

If Temu fails to comply, further penalty payments are threatened. Under the DSA, fines can reach up to 6 percent of a company's global annual revenue.

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 frequently prevents users in the EU from making informed purchasing decisions.

The DSA came into force in 2022 and has been in effect since February 2024. It aims to oblige large online platforms to stricter rules to better protect users and remove illegal content more quickly. A significant number of extensive DSA proceedings from the early phase of the regulation are still pending.