The European Commission has fined Chinese online marketplace Temu €200 million for violating the Digital Services Act (DSA), saying the company failed to properly assess risks linked to illegal products sold on its platform.
The Commission says evidence gathered during the investigation indicates EU consumers are “very likely” to encounter illegal items on Temu.
Commission states Temu’s 2024 risk assessment failed to meet DSA standards because it relied on general information about risks in the broader eCommerce sector rather than evidence specific to Temu’s platform.
Officials also say the company underestimated how frequently EU consumers could encounter illegal or unsafe products.
The Commission cites a mystery shopping exercise conducted during the investigation, which found that many chargers sold on the platform failed basic safety tests, while a significant number of baby toys posed medium to high safety risks due to excessive chemical content or choking hazards.
The EU also says Temu failed to properly assess how its recommender systems and influencer promotion programs could contribute to the spread of illegal products.
Under the DSA, Very Large Online Platforms are required to assess systemic risks connected to their services and introduce measures to reduce those risks.
The Commission says the size of the fine reflects the seriousness of the violation, the number of affected EU users, and the duration of the infringement.
Temu has until August 28, 2026 to submit an action plan outlining how it will address the violations.
Failure to comply with the Commission’s decision could result in additional penalty payments.
“Risk assessments are not box-ticking exercises – they are the backbone of the DSA,” said European Commission Executive Vice-President for Tech Sovereignty, Security and Democracy Henna Virkkunen. “Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive.”
