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The European Union has levied a €200 million ($232 million; £173 million) penalty against Chinese-owned online retailer Temu for selling illegal products, including hazardous baby toys and defective chargers.
The European Commission stated that Temu had “failed to diligently identify, analyze, and assess the systemic risks” associated with the items sold on its platform, which posed potential harm to consumers.
Temu has been under scrutiny since October 2024 to determine if it complies with regulations as a designated Very Large Online Platform under EU law.
In response to the fine, Temu expressed disagreement with the ruling, labeling it as excessive, and is currently evaluating its options.
The investigation included a mystery shopping initiative conducted by an independent testing organization.
Findings revealed that a significant number of chargers purchased through Temu did not meet basic electrical safety standards.
Additionally, many baby toys were found to contain hazardous chemicals exceeding legal limits or had small detachable parts that could lead to choking hazards, according to Euronews.
In addition to the financial penalty, Temu is required to submit an action plan addressing these deficiencies by August 28.
The European Commission will then have two months to assess whether the company has taken adequate steps toward compliance.
EU tech commissioner Henna Virkkunen emphasized that the ruling aims to convey a “very strong message” to Temu regarding consumer safety.
A spokesperson for Temu stated that while the retailer acknowledges the importance of clear and consistent regulations, the decision pertains to 2024 and does not accurately reflect the current state of their safety systems.
”We disagree with the European Commission’s decision and believe the fine is disproportionate,” they remarked.
”We are carefully reviewing the ruling and considering all available options.”
This fine marks only the second enforcement action taken under the EU’s Digital Services Act concerning content, the first was a €120 million penalty imposed on Elon Musk’s X social media platform last December.
By: Magdalene Agyeiwaa Sarpong