The European Union has levied a substantial €200 million ($232 million; £173 million) fine against the rapidly growing Chinese-owned online retailer Temu. This penalty, announced recently, stems from the platform’s failure to prevent the sale of illegal and hazardous products, including dangerous baby toys and faulty electrical chargers, to EU consumers.
EU’s Digital Services Act in Action
The European Commission stated that Temu had demonstrably failed to implement robust measures to identify, analyze, and mitigate the systemic risks associated with the products offered on its site. This oversight could have led to significant harm to consumers across the bloc.
Temu has been under scrutiny since October 2024, specifically regarding its compliance with the obligations set forth for Very Large Online Platforms (VLOPs) under the EU’s Digital Services Act (DSA). This legislation mandates stringent content moderation and risk assessment duties for platforms with over 45 million active users in the EU.
In response to the fine, a Temu spokesperson expressed disagreement, calling the penalty disproportionate and stating the company is reviewing the decision and considering its options. They noted the investigation pertains to past practices and does not reflect current system improvements.
Investigation Reveals Significant Safety Lapses
The Commission’s investigation included a covert
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