Temu has been fined $232 million by European Union (EU) regulators for failing to prevent illegal and unsafe products from being sold on its platform.
The European Commission confirmed the penalty on Thursday, saying the Chinese e-commerce company did not properly identify and manage risks linked to products sold to EU consumers.
The case sits under the Digital Services Act, a law that governs large online platforms.
The Commission opened its investigation in 2024, shortly after Temu expanded further across Europe. It followed complaints from the European Consumer Organisation (BEUC) and 17 of its national members.
Regulators said those complaints pointed to unsafe goods circulating widely on the platform.
Officials also carried out mystery shopping tests. A high number of phone chargers failed basic safety checks, while several baby toys also contained chemicals above legal limits or created choking risks.
The EU said Temu did not go far enough in assessing how its systems might increase those risks. It pointed to product recommendation tools and influencer-linked promotions that could push more unsafe goods into view.
Henna Virkkunen, a European Commission official responsible for technology, criticised the company’s approach.
She said “the company’s assessment of its risks leaves regulators, users, and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu,”
“Now it is time for Temu to comply with the law,” she added.
The Commission said the platform must now submit a compliance plan by August 28, 2026. Officials will review the plan two months after submission to decide if Temu has met its obligations.
Temu responded to the decision and rejected parts of the findings. A spokesperson said: “Temu respects the objectives of the Digital Services Act and the need for clear, consistent rules across the digital economy. However, we disagree with the European Commission’s decision and consider the fine to be disproportionate,”
The company added: “The decision relates to our first DSA assessment in 2024 and does not reflect the current state of our systems. Temu engaged constructively with the Commission throughout the process and has since taken further steps to strengthen risk assessment, platform governance, and user protection,”
Temu also said it would continue to work with regulators and consider its options.
The penalty is the second enforcement action under the Digital Services Act. It is also the largest fine issued so far under the law. The first was against X, which faced a penalty over transparency issues.
The law requires large platforms to identify and reduce systemic risks. It also demands stronger oversight of illegal or harmful products, along with clearer information on how recommendation systems operate.
Beyond Temu, the EU investigation also revealed issues about low-cost imports from China. Officials have been placing focus on large online marketplaces as part of trade and consumer protection efforts.
Other platforms are also under review. Shein and AliExpress are both facing separate investigations linked to unsafe or counterfeit goods.
Meanwhile, JD.com is under examination over its planned purchase of German retailer Ceconomy, with regulators questioning whether foreign subsidies may distort competition.
There is also a policy debate inside the EU, with officials discussing new trade and industrial measures aimed at balancing competition with Chinese e-commerce firms and protecting local businesses.
The issue has also reached the global level. In the United States, Temu stopped shipping directly from China after a policy change closed a duty exemption on low-value imports.
