EU FINES TEMU $232 MILLION OVER ILLEGAL PRODUCT RULES

The European Commission fined Chinese online retailer Temu €200 million, or about $232 million, after finding the platform failed to adequately assess and reduce the risk of illegal products being sold to European consumers. Reuters reported that the penalty follows a nearly two-year investigation under the Digital Services Act, triggered by consumer complaints across 17 EU countries.

Regulators said Temu did not properly identify systemic risks tied to illegal product sales and that its recommendation systems and influencer-driven promotions could amplify those risks. AP reported that the probe involved unsafe goods including hazardous toys and faulty electronics, while The Guardian reported concerns around baby toys, dangerous chargers, banned chemicals in clothing, and lead-contaminated jewelry.

Temu disputes the fine, calling it disproportionate and saying it has improved compliance systems, risk assessments, and user protections since the period reviewed by regulators. The European Commission has ordered Temu to submit an action plan by late August, and further penalties could follow if regulators decide the platform has not corrected the problems.

The case matters beyond one retailer. The EU is trying to show that major online marketplaces cannot scale quickly while shifting product-safety risk onto consumers and national authorities. For platforms built around low prices, rapid listings, and cross-border sellers, the Temu fine is a warning that European regulators intend to treat consumer safety, platform design, and illegal goods as core digital-governance issues.