Dangerous baby toys, faulty chargers, and illegal products sold to European consumers have landed Temu with a €200 million fine from Brussels — the biggest penalty yet under the EU’s sweeping law targeting online platforms.
EU fined Temu €200 million for breaching the Digital Services Act (DSA). According to the Commission, the Chinese online marketplace didn’t do enough to prevent illegal products being sold to consumers in the EU. It’s the biggest fine under the DSA, following a €120 penalty over X in December 2025.
Evidence gathered during the investigation shows that EU consumers are very likely to find illegal goods on Temu. A mystery shopping exercise found that many selected chargers failed basic safety tests. Also several baby toys posed safety risks. This includes excessive chemicals and small detachable parts which children could choke on.
Besides, Temu failed to properly examine how the design of its service could amplify the spread of these products. This includes the role of recommender systems and product promotion programmes involving affiliated influencers.
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Following the decision, Executive Vice-President Henna Virkkunen said Temu’s risk assessment “underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive”. She added that it leaves regulators, users and the public “in the dark about the true scale of potential harm posed by illegal products sold on Temu”.
Investigation opened in 2024
The case traces back to 2024, when the Commission opened formal proceedings against Temu under the Digital Services Act (DSA). The investigation focused on whether the platform had breached obligations related to the sale of illegal products, the service’s potentially addictive design, the systems used to recommend purchases to users, and researchers’ access to data.
Preliminary findings showed Temu failed to properly assess the risks of illegal products being disseminated through its marketplace. The non-compliance decision issued on Thursday closes that part of the investigation.
Temu also faced separate scrutiny under EU consumer protection rules two years ago. The Commission and national consumer authorities urged the company to address some practices. For example, fake discounts, pressure selling, forced gamification, missing information, suspected fake reviews, and hidden contact details.
Online marketplaces under pressure
Temu is not the only marketplace to come under the EU’s spotlight. The Commission opened formal proceedings against AliExpress in 2024 under the DSA. This was for failing to prevent the sale of illegal, unsafe, and counterfeit products, for lacking transparency in its advertising, and for utilising algorithms that can be easily manipulated.
SHEIN is also under investigation. In February, the Commission opened formal proceedings against the company under the DSA over the sale of illegal products, addictive design features, and the lack of transparency of recommender systems.
The case also comes as the European Parliament increases pressure on online marketplaces. The Internal Market and Consumer Protection Committee has been holding a wider inquiry into unsafe products sold online.
Next steps
If a company breaches the DSA, Brussels can impose fines of up to 6 per cent of its total annual turnover. The Commission can also impose daily penalty payments of up to 5 per cent if a company delays in complying with required remedies.
Temu now has until 28 August 2026 to submit an action plan. The European Board for Digital Services will then have one month to issue its opinion on the plan. After that, the Commission will have a further month to adopt its final decision and set a reasonable period for implementation.
