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The European Union(EU) has imposed a €200 million ($232 million) fine on Chinese-owned online retailer Temu over the sale of illegal and unsafe products, including baby toys and faulty electrical chargers.
EU regulators said the platform failed to properly identify, assess and manage systemic risks linked to illegal goods sold to consumers across the bloc.
They added that users in the EU were highly likely to come across prohibited items on the platform, noting that Temu underestimated the scale of exposure to such products.
“The company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union,” the EU said.
Temu, which entered the EU market in 2023 and now has about 130 million users, has faced increased scrutiny since the bloc launched an investigation in October 2024.
Preliminary findings later suggested breaches of the Digital Services Act, which requires major online platforms to assess and mitigate risks linked to illegal content and products.
EU tech commissioner Henna Virkkunen said Temu’s size made its compliance especially important, noting that a significant share of European consumers were exposed to listings that failed to meet safety standards.
“Temu is a very big player in the European market,” Virkkunen told reporters,
According to the European Commission, Temu’s 2024 risk assessment fell short of required standards, with regulators citing the presence of unsafe baby products, including rattles with chemicals above legal limits, as well as chargers that failed safety checks.
The Commission said the company also failed to properly assess how its platform design could increase the spread of illegal goods.
Under the law, penalties can reach up to six per cent of a company’s global annual turnover. Temu reportedly generated $61.7 billion in revenue last year.
While the fine could have been higher, officials said it reflected the scope of the breach, which covered one assessment cycle with clear violations.
Temu has been directed to pay the fine and submit a compliance plan by August 28 outlining corrective measures. Failure to comply could lead to further penalties, and the company may appeal the decision.
The EU is still investigating other potential violations by Temu, including the use of addictive design features and its product recommendation systems.
The sanction comes as Brussels steps up scrutiny of Chinese tech firms and prepares wider discussions on its economic and trade approach to China, alongside fresh probes into Chinese companies investing in Europe.
