STORY
The European Commission has fined Temu €200 million after finding that the online marketplace failed to properly assess and reduce the risks of illegal products being sold to consumers in the European Union. The decision was made under the Digital Services Act, which gives Brussels direct supervisory powers over the largest online platforms operating in the bloc.
The Commission said evidence gathered during its investigation indicated that EU consumers were very likely to encounter illegal items on Temu. It said the company’s 2024 risk assessment relied too heavily on general information about the e-commerce sector, rather than specific evidence about its own platform, including public reports and product testing.
Officials said mystery shopping exercises found serious problems with some chargers and baby toys, including failed safety tests, chemical risks and suffocation hazards. Temu has been given until late August to produce an action plan, while Brussels is continuing wider scrutiny of the platform’s design, recommender systems and product promotion arrangements.