The European Commission has imposed a fine of 200 million euros on the Chinese online retailer, Temu. The Brussels body announced on Thursday that this penalty relates to violations of the Digital Services Act (DSA).
The Commission stated that Temu failed to properly identify, analyze, and assess the systemic risks associated with offering illegal products on its platform, and the resulting damage to consumers in the EU.
According to the evidence presented by the Commission, there is a high probability that consumers in the EU encounter illegal items when using Temu. Specifically, the EU Commission found that Temu’s 2024 risk assessment did not meet the standards set out in the DSA. This assessment was based on general information regarding risks in the entire e-commerce sector rather than on specific evidence pertaining to Temu’s own services, and it significantly underestimated how frequently EU consumers are likely to come across unlawful goods.
During the Commission’s investigation, a test purchase showed that a high percentage of selected chargers failed basic safety tests, while many tested baby toys presented moderate to high safety risks.
The penalty was calculated based on the nature, seriousness, and duration of the violation concerning the affected EU users. Failing to conduct proper risk assessments-which are a fundamental pillar of the DSA architecture-is considered a particularly serious breach. Temu has been given until August 28, 2026, to submit an action plan detailing how it will rectify its failure to comply with the risk assessment obligations. Failure to adhere to this decision could result in mandatory fines.
Vice-President of the European Commission, Henna Virkkunen, commented that “Risk assessments are not mere tick-box exercises-they are the backbone of the DSA”. She asserted that Temu’s risk assessment underestimated concrete dangers, was too vague, and lacked solid evidence and comprehensive scope. She added that this lack of clarity left regulators, users, and the public uncertain about the actual extent of harm that illegal products sold on Temu could cause. Virkkunen concluded by stating, “Now it is time for Temu to comply with the law”.
