On Thursday, the European Union fined Chinese online retailer Temu €200 million (about R4 billion) for selling illegal products, including dangerous baby toys and defective chargers, on the platform. (Photo: Elisma van der Watt/Maroela Media)
The European Union (EU) on Thursday fined Chinese online retailer Temu €200 million (about R4 billion) for selling illegal products, including dangerous baby toys and defective chargers, on the platform.
According to the EU, Temu failed to “thoroughly identify, analyze and assess the risks of illegal products offered on its platform and the resulting harm to consumers in the European Union”.
EU regulators say European consumers are “very likely to buy illegal products” on Temu and that the company “severely underestimated how often EU consumers were likely to” spot such products.
Temu has rapidly gained popularity since its entry into the EU market in 2023 and currently has around 130 million users in the union.
However, the platform has been under investigation since October 2024 and a preliminary finding last July indicated that Temu may have breached EU rules on the risks of illegal products.
“Temu is a very big player in the European market,” said Henna Virkkunen, the EU’s technology commissioner. According to her, the platform’s scale means that “a very large part” of EU consumers gain access to these illegal products.
The fine is only the second imposed under the EU’s Digital Services Act (DSA). Elon Musk’s social media platform X was fined R2.45 billion in December.
The DSA requires major digital platforms, including social media platforms and online retailers, to conduct risk analyzes to determine what dangers their platforms pose and how they can be mitigated.
The EU criticized Temu’s 2024 risk analysis, saying it did not meet the required standards. Among other things, regulators have found baby toys containing chemicals that exceed legal safety limits, as well as chargers that fail basic safety tests.
The European Commission says Temu also failed to properly assess how the design of its platform could fuel the distribution of illegal products.
Temu must now pay the fine and submit a plan to the EU by August 28 detailing how the company will correct the violations. If the platform does not comply, further penalty payments may follow.
Meet. (Photo: Samuel Boivin / NurPhoto via AFP)
The company can also appeal the fine, as Musk has already done in EU courts.
The EU is still investigating other possible violations by Temu, including the use of addictive design features that may harm users’ physical and mental well-being, as well as how content and products are marketed to users.
The fine comes just a day before EU leaders meet on how the 27-member bloc should toughen its approach to China to create a more level economic playing field.