EU Slaps Temu With €200 Million Fine Over Illegal Product Sales
Chinese online retailer Temu has been fined €200 million ($232 million) by European Union regulators for failing to adequately prevent the sale of illegal products on its platform. The penalty marks the second major enforcement action under the EU’s Digital Services Act (DSA), following a lengthy investigation triggered by complaints from consumer advocacy group BEUC and several national organizations across Europe.
The European Commission said Temu did not properly identify or assess the risks posed by illegal goods being sold to consumers within the EU. Regulators also criticized the company for failing to examine how its recommendation systems and influencer-driven promotions could contribute to the spread of unsafe or unlawful products. EU tech chief Henna Virkkunen described the ruling as a “strong message” emphasizing that risk management is a core requirement under the DSA.
Temu has been ordered to submit an action plan by August 28 outlining how it will comply with EU rules. Regulators will review the measures before deciding whether additional penalties are necessary. The investigation will also continue into allegations that Temu’s platform design may be addictive and whether it has provided sufficient data access to researchers. Under the DSA, companies can face fines of up to 6% of their global annual turnover for serious violations.
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