The European Commission has fined Temu €200 million (about $232 million) for failing to prevent the sale of illegal products on its platform, a violation of the Digital Services Act (DSA).
This is the second time the Commission has issued a fine under the DSA to an international company. Temu has until August 28 to submit an action plan to ensure compliance or face additional periodic fines.
The Commission found that Temu, a Chinese online marketplace known for low-cost goods, did not properly assess the risks related to unlawful products sold through its platform. It also likely encouraged European customers to buy illegal goods.
What the European Commission Found on Temu’s Platform
The investigation, which started in 2024 and remains ongoing, has led the Commission to state that enough evidence has been collected to issue an initial fine. Key findings include:
- Temu provided a generic risk assessment that lacked specific analysis of its platform and did not adequately reflect its reporting or testing efforts.
- The company underestimated how often illegal goods were offered to European customers.
- A mystery shopping investigation found that many products on Temu would fail basic safety tests, including baby toys containing unsafe levels of hazardous chemicals that could pose risks to children.
- Temu also failed to conduct a proper assessment of its platform's design, which the Commission said effectively encouraged the sale of illegal goods through promotional programs advertised by affiliated influencers.
Under the Digital Services Act, very large online platforms are required to assess systemic risks to consumers and adopt appropriate mitigation measures when such risks are identified.
The Commission stated that the lack of a proper risk assessment constitutes a significant violation of the DSA.
How the €200 Million Temu Fine Was Calculated and What Happens Next
The €200 million fine was set based on the severity of the violation, the number of affected EU users, and how long the misconduct lasted. Under the DSA, companies can face penalties of up to 6% of their global annual revenue. This current fine leaves open the possibility of higher penalties if Temu fails to comply.
Temu has until August 28 to submit an action plan under Article 75 of the DSA to bring the platform into compliance. Without a proper plan or meaningful corrective measures, the company could face additional fines on a regular basis.
In a statement to Reuters, Temu said it was ready to cooperate with the European Commission. The company also argued that the 2024 assessment cited by Brussels no longer accurately reflects how the platform currently operates.
The Temu fine is the second DSA-related penalty issued by the European Commission, following a fine imposed on Elon Musk's X platform in 2025. In that case, X reportedly did not include cooperation as part of its response.
The enforcement actions under the DSA are part of a wider European regulatory effort targeting large platforms, with ongoing investigations into TikTok and Meta over concerns related to addictive algorithms and child safety issues.
The investigation into Temu is still open, which means additional findings or penalties could be issued beyond the current fine and the August 28 deadline for compliance.
Thank you for being a Ghacks reader. The post European Commission Fines Temu €200 Million Over Illegal and Unsafe Product Listings Under Digital Services Act appeared first on gHacks.
0 Commentaires