A sweeping enforcement move under the EU’s landmark online rules has landed Chinese-owned retailer Temu with a €200 million fine after investigators found illegal goods—ranging from dangerous baby toys to faulty chargers—being sold to European consumers.
The European Commission said Temu breached its obligations by failing to properly spot and evaluate “systemic risks” tied to illegal products available on its platform and the harm those items can cause in the European Union.
In its statement, the commission said the evidence suggests EU shoppers are “very likely” to come across illegal products while using Temu.
Regulators also concluded that a risk assessment Temu carried out in 2024 did not meet the requirements of the Digital Services Act (DSA), the EU’s rulebook for major online intermediaries.
“It seriously underestimated how often EU consumers are likely to encounter illegal items,” the commission said.
The commission pointed to findings from a “mystery shopping” exercise included in the investigation. It said a very high share of selected chargers failed basic safety tests, while a high proportion of baby toys tested presented safety risks ranging from medium to high severity—either because they contained chemicals above legal safety limits or because detachable parts created suffocation hazards.
According to the EU, Temu also did not adequately examine how the way its service is designed—including recommender systems and product-promotion programmes involving affiliated influencers—could intensify the spread and visibility of illegal products.
Under the DSA, designated Very Large Online Platforms (VLOPs) must diligently assess systemic risks connected to their services and put mitigation steps in place to address them.
The commission said Temu has until 28 August 2026 to submit an action plan outlining measures to remedy the breach of its risk-assessment obligations.
Once the plan is received, the European Board for Digital Services will have one month to issue its opinion.
Henna Virkkunen, the European Commission Executive Vice-President for Tech Sovereignty, Security and Democracy, said risk assessments are central to the DSA and cannot be treated as a procedural formality.
“Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive,” Ms Virkkunen said.
“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,” she added.
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A Temu spokesperson said the company supports the aims of the DSA and agrees there is value in clear and consistent rules across the digital economy.
“However, we disagree with the European Commission’s decision and consider the fine to be disproportionate,” the company said.
Temu said the ruling concerns its first DSA assessment in 2024 and “does not reflect the current state” of its systems. The firm said it worked constructively with the commission during the process and has since taken additional measures to strengthen its risk assessment, platform governance and user protections.
“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,” Temu said.
Digital Services Act finally baring its teeth – Andrews
Fianna Fáil MEP for Dublin Barry Andrews welcomed the sanction, describing it as “the Digital Services Act finally baring its teeth”.
Speaking on RTÉ’s Drivetime, Mr Andrews said he has been campaigning to increase public awareness of “the dangers to the environment, the dangers to labour rights, dangers to consumer safety associated with these very large online platforms, particularly Temu and Shein”.
“I think it is really welcome. These online platforms just don’t carry out sufficient risk assessment in my opinion and this is borne out by the judgment of the European Union on this case,” he said.
Asked about the appeal of low-cost goods sold by companies such as Temu, Mr Andrews said he was somewhat sympathetic but argued it can be a “false economy” if paying slightly more results in products that last longer.
“The reality is these are not sustainable products from an environmental point of view and they’re not durable from a consumer point of view,” he said.
