U hits Temu with €200m fine over illegal product sales

The European Union has fined Chinese-owned online retailer Temu €200 million ($232 million) after regulators found dangerous and illegal products, including unsafe baby toys and faulty chargers, being sold on its platform.

The European Commission said Temu failed to properly assess and address risks posed to consumers under the EU’s Digital Services Act. An investigation, which included mystery shopping tests, found many chargers failed electrical safety standards, while some baby toys contained excessive chemicals or choking hazards.

Temu said it disagreed with the ruling, calling the fine disproportionate, and is reviewing its legal options. The company must submit an action plan by Aug. 28 to address the issues.

Consumer advocates welcomed the penalty, calling for tougher action against online marketplaces selling unsafe products. The fine is only the second issued under the EU’s Digital Services Act, following a €120 million penalty against X last year.

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