- EU imposes its second fine under the Digital Services Law on Temu, after X
- This is the first of its kind related to physical products.
- Electrical products and baby toys failed tests, prompting investigation
The European Union fined Chinese e-commerce giant Temu 200 million euros ($232 million) for violating the Digital Services Law, a set of regulations designed to keep consumers safe from harmful content and banned products.
Temu has become the second company to receive a fine from the DSA since it came into force at the end of 2022, surpassed only by X, which received a fine of €120 million.
This time, the EU fine relates to the sale of prohibited and dangerous goods, including electronic chargers that failed basic safety tests.
Temu receives a fine of 200 million euros for DSA
European researchers conducted anonymous mystery shopping exercises on the platform to uncover unreliable chargers, as well as a number of baby toys that posed safety risks due to toxic chemicals or parts that created choking hazards.
Furthermore, the European Commission argued that Temu did not consider how recommendation systems and influencer promotions could “amplify [the] risks of dissemination of illegal products.”
“Temu’s risk assessment underestimates concrete risks, lacks specificity, is not based on solid evidence and is not exhaustive,” commented EU Executive Vice President for Technological Sovereignty, Security and Democracy, Henna Virkkunen.
The company now has until August 28, 2026 to submit an action plan under section 75 of the DSA; Otherwise, it could result in more fines.
A Temu spokesperson said TechRadar Pro They consider the fine to be “disproportionate.”
“We will continue to collaborate with regulators in good faith and work towards a market that serves consumers, businesses and communities responsibly,” they added. “We are reviewing the decision carefully and considering all available options.”
Temu also stressed that “the decision relates to [its] first DSA assessment in 2024 and does not reflect the current status of [its] systems”, having “constructively engaged” to “strengthen risk assessment, platform governance and user protection”.
Although this is the second fine imposed by DSA, it is also the first of its kind related to physical products. A previous fine
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