EU Fines Temu €200m for Illegal Products
The European Union has levied a €200 million ($232 million; £173 million) fine on the Chinese-owned online retailer Temu for offering illegal products on its platform, including dangerous baby toys and faulty chargers.
The European Commission stated that Temu had "failed to diligently identify, analyse and assess the systemic risks" associated with these products and the potential harm they could inflict on consumers.
Investigation and Findings
Temu has been under investigation since October 2024 to determine whether it has fulfilled its obligations as a designated Very Large Online Platform under EU legislation.
The inquiry included a mystery shopping exercise conducted by an independent testing organisation. This investigation revealed that a significant proportion of chargers purchased via Temu did not pass basic electrical safety tests. Additionally, many baby toys were found to pose safety risks, containing chemicals exceeding legal limits or featuring small detachable parts that could cause suffocation hazards, as reported by Euronews.
Company Response and Next Steps
Temu has expressed disagreement with the Commission's decision, describing the fine as disproportionate and is currently evaluating its options.
"We disagree with the European Commission's decision and consider the fine to be disproportionate," a Temu spokesperson said. "We are reviewing the decision carefully and considering all available options."
Besides paying the fine, Temu is required to submit an action plan addressing the identified shortcomings by 28 August. The European Commission will then have two months to assess whether the company has taken sufficient measures to comply.
EU Commission Statement and Context
EU tech commissioner Henna Virkkunen emphasized the significance of the ruling, stating it was meant to send a "very strong message" to Temu.
In a statement, a Temu representative acknowledged the importance of clear and consistent regulations but noted that the decision pertains to 2024 and does not reflect the current status of its systems.
"The retailer respected the need for clear, consistent rules, but the decision related to 2024 and did not reflect the current state of its systems," the spokesperson added.
Broader Regulatory Framework
This fine marks only the second penalty imposed under the EU's Digital Services Act concerning content. The first was a €120 million fine levied against Elon Musk's X social media platform in December of the previous year.
