Chinese internet giant Temu hit with €200m fine over illegal and unsafe products
The Chinese-owned retailer says punishment is unfair and could appeal
The European Union has imposed a €200m (£173m) fine on Chinese-owned online retailer Temu for listing illegal products such as dangerous baby toys and faulty chargers for sale on its website.
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The European Commission (EC), which is responsible for enforcing EU law, said the company had "failed to diligently identify, analyse and assess the systemic risks" of the listed products and the harm they could cause to consumers.
The international retailer has been under investigation since October 2024 regarding whether it has been meeting its obligations as a designated Very Large Online Platform under EU law.
The online retailer said it disagreed with the decision, deemed the fine disproportionate and was now considering available options.
The European Commission vice-president Henna Virkkunen, said: “Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive.
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It leaves regulators, users and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu. Now it is time for Temu to comply with the law.”
Virkkunen added the decision was intended to send a "very strong message" to Temu.
An independent mystery shopping exercise found that many chargers bought on Temu failed basic electrical safety tests.
It also found serious risks in baby toys, with some containing chemicals above legal limits or small detachable parts that could cause choking.
In addition to paying the fine, Temu must present an action plan to address the failures by 28 August.
Temu, which was originally short for Team Up, Price Down, said the ruling related to 2024 and did not reflect its current systems.
“We disagree with the European Commission’s decision and consider the fine to be disproportionate,” a spokesperson said.
“We are reviewing the decision carefully and considering all available options.”
Which? welcomed the move and called on the UK to act too.
“The EU’s decision to fine Temu €200m is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms,” said Sue Davies, head of consumer protection policy at Which?.
She added that the UK should use its new powers under the Product Regulation and Metrology Act to make online marketplaces legally responsible for unsafe goods.
Temu was founded by Colin Huang in 2022 and now operates in 90 countries.
Huang's wealth is estimated at between $33bn and $44bn (£32bn).
The fine is one of the biggest ever imposed under the EU’s Digital Services Act.
Elon Musk’s X was fined last year for “deceptive” verification badges and a lack of transparency over advertising.