European Commission fines Temu 200 million euros over safety and risk management failures

The European Commission has imposed a 200 million euro fine on the e-commerce platform Temu for failing to comply with the Digital Services Act (DSA). Authorities stated that Temu failed to identify, analyze, and mitigate systemic risks related to the sale of illegal and unsafe products. Investigations involving mystery shopping revealed that many items, including electrical chargers and baby toys, failed safety standards, posing risks of fire, overheating, and choking. The Commission criticized Temu's 2024 risk assessment for relying on generic industry data rather than specific evidence concerning its own platform operations. Additionally, concerns were raised regarding how recommendation systems and influencer promotions may amplify the availability of harmful goods. Temu has officially rejected the fine as disproportionate, arguing that the decision is based on its initial assessment period and does not reflect current improvements to its systems. The company stated it has engaged constructively with regulators and has until August 28, 2026, to submit a formal action plan. Temu maintains that it is reviewing the decision and evaluating its legal options while continuing to work toward a responsible online marketplace.