EU Fines Temu €200 Million Over Dangerous Products

The European Commission has fined Temu €200 million for alleged failures to address systemic risks linked to illegal and dangerous products sold on its online marketplace. The decision follows a 19-month investigation under the Digital Services Act, which found that EU consumers were highly likely to encounter unsafe goods on the platform, including baby products, electronics, clothing, and jewelry.

According to the Commission, an unpublished mystery-shopping exercise identified a high share of unsafe baby products and a very high share of dangerous chargers available through Temu. Consumer organizations had previously raised concerns about toys with choking hazards, dummy chains posing strangulation risks, jewelry containing hazardous metals such as lead, clothing with banned chemicals, and chargers presenting risks of burns, electric shock, or fire.

The Commission also criticized Temu’s risk assessment and platform design controls. It found that recommender systems and influencer promotions could increase the spread of illegal products, while Temu’s 2024 risk assessment allegedly lacked specificity, solid evidence, and a full view of the risks. The fine is the second penalty imposed under the DSA and the largest so far, following the €120 million fine imposed on X for issues linked to verification badges and advertising transparency.

Temu, which has around 130 million users in the EU, said it disagrees with the decision and considers the fine disproportionate. Its parent company, PDD Holdings, reported global revenue of approximately €47 billion in 2024, including revenue from Pinduoduo. The Commission’s investigation remains open on other issues, including illegal product sales, addictive design, and researcher access to platform data. Temu must submit a compliance action plan by 28 August.