EU fines Temu €200 million under DSA for unsafe goods

The European Union has fined the Chinese online retailer Temu 200 million euros for failing to adequately protect consumers from illegal and dangerous products sold on its platform. The penalty, announced Thursday by the European Commission, is the second major fine issued under the bloc's Digital Services Act (DSA).

Regulators stated that Temu did not properly identify, analyze, or assess the systemic risks posed by illegal goods, nor the resulting harm to consumers within the EU. The investigation, prompted by complaints from a pan-European consumer organization and its national members, found the company's risk assessments lacked specificity and were not grounded in solid evidence. Officials said the assessments focused too broadly on general e-commerce risks rather than concrete dangers specific to Temu's operations.

A mystery shopping exercise conducted as part of the probe uncovered numerous non-compliant products. These included electronic device chargers that failed basic safety tests and a high percentage of baby toys that posed safety risks. The toys either contained chemicals exceeding safety limits or had small parts that could detach, creating a suffocation hazard.