Temu fined €200m by EU over illegal products on platform

Unsafe baby toys and faulty chargers sold through Temu have led to a €200m fine from the European Union.

The penalty was imposed after the European Commission found that the Chinese-owned online retailer had not done enough to detect, assess and reduce risks linked to illegal products on its platform.

Temu has been under EU investigation since October 2024 under rules governing Very Large Online Platforms.

The Commission’s concerns were supported by a mystery shopping exercise carried out by an independent testing body.

That exercise found that many chargers bought from Temu failed basic electrical safety tests.

It also found safety problems with several baby toys, including excessive chemical levels and small detachable parts that could pose suffocation risks.

The Commission has now ordered Temu to submit a corrective action plan by August 28.

After receiving the plan, EU regulators will have two months to decide whether the company’s proposed measures are enough.

EU tech commissioner Henna Virkkunen said the decision was intended to send a strong message to the company.

Temu has disagreed with the ruling.

A spokesperson said the company respects the need for clear and consistent rules, but argued that the decision was based on conditions in 2024 and does not reflect the current state of its systems.

The company described the fine as disproportionate and said it was reviewing its available options.

Consumer organisation Which? welcomed the EU’s move and called on the UK government to take a similar enforcement approach.

Its head of consumer protection policy, Sue Davies, said online marketplaces must be held accountable for dangerous products sold through their platforms.

The Temu fine is the second content-related penalty issued under the EU’s Digital Services Act.

The first was a €120m fine against Elon Musk’s social media platform X last December.