European Commission fines Temu €200 million
Comments Off on European Commission fines Temu €200 millionSources: European Commission, Nieuwsfiets, BBC Image source: Nieuwsfiets
On 28 May, the European Commission (EC) issued a fine of €200 million to online marketplace Temu, under the Digital Services Act (DSA), which in 2022 introduced regulations for online services used by European citizens in their everyday life. The EC has stated that “The company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.”
The risk assessment created by Temu in 2024 falls short of standards laid out in the DSA, which requires designated Very Large Online Platforms to diligently assess systemic risks linked to their services, and implement mitigation measures.
A mystery shopping exercise, conducted by an independent testing organisation on behalf of the EC, found that a very high percentage of chargers purchased through Temu failed basic electrical safety tests. Also highlighted by the mystery shopping activity were a high percentage of baby toys which pose medium- to high-severity safety risks.
The investigation also relied on data from EU customs and market surveillance authorities, which showed high rates of non-compliance among products sold on Temu in the categories tested.
The Temu online marketplace acts as a platform for the sale of a wide variety of inexpensive products across more than 600 categories. E-bikes and e-scooters are widely available at low prices.
The importance of the risk assessment
The EC emphasises that Temu has failed to properly assess how the design of its service, which includes recommendation systems, and influencer-affiliated product promotion programmes – can amplify the risk of illegal products being circulated. The EC views the failure to conduct adequate risk assessments as a serious infringement of the DSA.
Henna Virkkunen, EC Executive Vice-President for Tech Sovereignty, Security and Democracy, said, “Risk assessments are not box‐ticking exercises – they are the backbone of the DSA. Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive. 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.”
Temu has a deadline of 28 August 2026 to submit an action plan to the EC, which must contain measures to remedy the breaching of risk assessment obligations.
Temu’s response
A Temu spokesperson said in a statement that, while the company respects the need for clear, consistent rules, the EC’s decision related to 2024, and did not reflect the current state of its systems.
“We disagree with the European Commission’s decision and consider the fine to be disproportionate,” they said, continuing, “We are reviewing the decision carefully and considering all available options.”
Supporting voices
The UK consumer organisation Which? supported the EC’s position, and urged the UK to take similar action. Sue Davies, head of consumer protection policy, said, “The EU’s decision to fine Temu to the tune of €200m is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms. The UK government should follow the EU’s example and make use of its new powers under the Product Regulation and Metrology Act to make online marketplaces legally responsible for dangerous products.”