The European Union has levied a €200 million fine against the Chinese-owned e-commerce giant Temu following investigations into the sale of hazardous and illegal products on its platform. The penalty comes after regulators determined the retailer failed to adequately assess and mitigate systemic risks associated with the goods sold to consumers, including faulty electrical chargers and dangerous children’s toys.

The enforcement action follows an investigation launched in October 2024 to determine if Temu was meeting its legal obligations as a designated Very Large Online Platform. Independent testing revealed significant safety concerns, noting that a high percentage of chargers failed basic electrical safety standards. Furthermore, many baby toys were found to contain chemical levels exceeding legal limits or possessed small, detachable parts that posed a suffocation risk to young children.

In response to the ruling, Temu has expressed disagreement with the decision, labeling the fine as disproportionate. A company spokesperson noted that while they respect the necessity of clear regulatory frameworks, the decision pertains to 2024 and does not reflect the current state of their safety systems. The retailer is currently reviewing its legal options.

As part of the settlement, Temu is required to submit a comprehensive action plan by August 28 to address these safety failures. Regulators will then have a two-month window to evaluate whether the proposed measures are sufficient to ensure compliance with safety regulations. This marks a significant moment in the enforcement of the Digital Services Act, following previous major penalties against other large-scale digital platforms.