EU imposes hefty fine on Temu for serious violations

The European Commission has fined Temu 200 million euros. The Chinese online retailer is not doing enough to prevent the sale of illegal and harmful products in Europe, according to the Commission.

“High risk of illegal products”

As early as 2024, the European Commission launched an investigation into Temu to determine whether the online store was complying with the Digital Services Act (DSA), following complaints about illegal products and the addictive nature of the app. Mystery shoppers were among the methods used in the investigation. Based on preliminary results, EU Justice Commissioner Michael McGrath described the findings last year as nothing short of “shocking.”

Now the investigation has been completed, and the conclusions are harsh: it turns out that consumers face a very high risk of encountering illegal products on Temu. The company cannot provide a satisfactory answer to the question of what safety measures it takes to keep sellers of dangerous, unhealthy, and illegal products off the platform. Items such as USB chargers and baby toys, among others, posed significant safety risks.

The fine imposed was calculated based on the nature of the infringement, its duration, and its severity in terms of affected European users, the Commission added. It is the highest fine imposed to date for violations of the DSA. X was fined 120 million euros in December. Temu can still appeal, but will in any case have to take decisive measures to comply with the regulations. The platform has been active in Europe since 2023 and already has more than 100 million users here.

“Disproportionate”

“Temu respects the objectives of the Digital Services Act and the need for clear, consistent rules across the digital economy. However, we disagree with the European Commission’s decision and consider the fine to be disproportionate”, reacts the company.

“The decision relates to our first DSA assessment in 2024 and does not reflect the current state of our systems. Temu engaged constructively with the Commission throughout the process and has since taken further steps to strengthen risk assessment, platform governance, and user protection. We will continue to engage with regulators in good faith and work toward a marketplace that serves consumers, businesses, and communities responsibly. We are reviewing the decision carefully and considering all available options.”