European commission fines Temu 200 million euros over safety 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). The regulatory body determined that the company did not sufficiently analyze or mitigate systemic risks regarding the sale of illegal and dangerous products on its platform. Investigations, including mystery shopping exercises, revealed that many products, such as electronic chargers and children's toys, failed to meet essential EU safety standards. Officials noted that some chargers were prone to overheating and fire hazards, while certain toys posed choking risks or contained chemical levels exceeding legal limits. According to Commission Vice President Henna Virkkunen, Temu’s risk assessments were criticized for being based on general industry data rather than specific evidence regarding their own platform. The company, which has been operating in Europe since 2023, is now required to take corrective action to ensure compliance with union regulations. This decision highlights the EU's stricter stance on large online marketplaces regarding consumer protection.