Temu has been fined 232 million dollars by European Commission regulators for allegedly failing to prevent illegal and unsafe products from being sold on its platform.
The European Commission announced the penalty on Thursday, saying the company failed to adequately identify and manage risks linked to goods sold to consumers within the European Union.
The case was brought under the Digital Services Act (DSA), the EU law regulating large online platforms and digital services.
According to the Commission, investigations into Temu began in 2024 following complaints from the European Consumer Organisation and 17 affiliated national consumer groups over the circulation of unsafe products on the platform.
Regulators said mystery shopping tests carried out during the investigation revealed that several phone chargers failed basic safety requirements, while some baby toys contained chemicals above legal safety limits or posed choking hazards.
The Commission further accused Temu of failing to properly assess how its recommendation systems and influencer-linked promotions could amplify the visibility of unsafe goods.
Henna Virkkunen criticised the company’s approach, saying the platform’s risk assessment did not provide regulators and consumers with adequate information about the scale of harm posed by illegal products sold through the site.
“Now it is time for Temu to comply with the law,” she stated.
The Commission directed the company to submit a compliance plan by Aug. 28, 2026, adding that the plan would be reviewed within two months to determine whether the platform had fulfilled its obligations under the law.
Reacting to the decision, Temu said it respected the objectives of the Digital Services Act but disagreed with the Commission’s findings and described the fine as disproportionate.
A spokesperson for the company said the decision related to its initial DSA assessment conducted in 2024 and did not reflect the current state of its systems.
The company added that it had since strengthened its risk assessment procedures, governance systems and user protection measures, while pledging continued cooperation with regulators.
The fine is the largest issued so far under the Digital Services Act and marks the second enforcement action under the law.
The EU has also launched separate investigations into Shein and AliExpress over allegations relating to unsafe or counterfeit products.
