Temu Fined €200M for Breaching EU Digital Services Act on Illegal Products

The European Commission has fined Temu €200 million ($233 million) for failing to adequately assess risks associated with illegal products sold on its platform. The investigation revealed that consumers in the EU were likely to encounter unsafe items, including toys with hazardous chemical content and chargers that failed safety checks. The EC criticized Temu's 2024 risk assessment for lacking specificity and being based on general e-commerce risks rather than platform-specific evidence. The decision follows a nearly two-year investigation initiated by complaints from consumer organizations. Temu has until August 28, 2026, to submit an action plan to address compliance issues. The company disputes the fine, claiming it is disproportionate and does not reflect improvements made since the initial assessment.

Key Points: • Temu fined €200 million for inadequate risk assessment of illegal products. • Investigation revealed unsafe toys and chargers frequently sold on the platform. • Temu must submit an action plan by August 28, 2026, to address compliance.