The European Union fined online retailer Temu €200M over illegal products sold on its platform such as dangerous battery chargers and baby toys. The company, based in Boston and part of China's Pinduoduo retail group, "failed to diligently identify, analyse and assess the systematic risks" of certain products and the harms they might cause, according to a report produced by the European Commission.
Temu qualifies as a "Very Large Online Platform" under European law (45m or more European users each month) and is required to closely police use by third parties.
The investigation began in October 2024 and independent testers found that many chargers bought on Temu failed electrical safety tests, that baby toys contained risky chemicals or small parts that presented choking hazards, and the rest of it. The outcome of the investigation was not remotely surprising: "loose wires, sketchy lumps of steel, and other suspicious findings have me seriously concerned," wrote one gadget reviewer who cracked open some items bought there.
Temu must now pay the fine and has until August 28 to explain how it intends to fix the problems. While the "fine is a price," in the sense that €200m (~$233m) hardly dents the platform's $70 billion annual sales, profits are shaky, the competition is fierce, and the EU can always come back for more. And unlike its actions against companies like Apple, this isn't about publishing fees or technical impositions: it's about lethal junk linked to dozens of injuries and multiple deaths worldwide each year.
It's the second fine under the EU's new consumer safety rules. It fined X €120m last December for because it sold "verified" labels without meaningfully verifying the buyer, as as in the below example.
"This deception exposes users to scams, including impersonation frauds, as well as other forms of manipulation by malicious actors," it said.
Update: A statement from Temu:
Temu respects the objectives of the Digital Services Act and the need for clear, consistent rules across the digital economy. However, we disagree with the European Commission's decision and consider the fine to be disproportionate.
The decision relates to our first DSA assessment in 2024 and does not reflect the current state of our systems. Temu engaged constructively with the Commission throughout the process and has since taken further steps to strengthen risk assessment, platform governance, and user protection.
We will continue to engage with regulators in good faith and work toward a marketplace that serves consumers, businesses, and communities responsibly. We are reviewing the decision carefully and considering all available options.
