The European Commission has fined online shopping platform Temu for allegedly selling dangerous products. File Photo by Hannibal Hanschke/EPA
The European Commission fined Chinese-owned retailer Temu $232 million for selling illegal products, including dangerous baby toys and faulty chargers.
The Commission said in a statement that Temu “failed to diligently identify, analyze, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union” under the Digital Services Act.
A mystery shopping exercise included in the Commission’s investigation shows a “very high percentage of the selected chargers failed basic safety tests, while a high percentage of tested baby toys posed safety risks of medium to high severity, as they contain chemicals exceeding legal safety limits or pose suffocation hazards due to detachable parts.”
Under the DSA, designated Very Large Online Platforms must “diligently assess systemic risks linked to their services and adopt corresponding mitigation measures,” the Commission said.
Temu said it disagrees with the decision and will explore its options.
A Temu spokesperson told the BBC in a statement that it respected the need for clear, consistent rules, but that the investigation was from 2024 and does not reflect the current state of its systems.
“We disagree with the European Commission’s decision and consider the fine to be disproportionate,” Temu said. “We are reviewing the decision carefully and considering all available options.”
The EC said Temu has until Aug. 28 to submit an action plan, which must show measures to fix the problems. he European Board for Digital Services will then have a month to release an opinion. Then, the EC will have another month to adopt a final decision.
“Risk assessments are not box‐ticking exercises — they are the backbone of the DSA,” Henna Virkkunen, European Commission executive vice president for Tech Sovereignty, Security and Democracy, said in a statement. “Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence and is not comprehensive. It 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.”
British consumer organization Which? praised the decision.
“The EU’s decision to fine Temu to the tune of [$232 million] is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms,” said Sue Davies, head of consumer protection policy at Which? “The U.K. government should follow the EU’s example and make use of its new powers under the Product Regulation and Metrology Act to make online marketplaces legally responsible for dangerous products.”
It’s only the second fine levied under the Digital Services Act for content. It fined X $140 million in December for “Deceiving users with blue checkmarks.”
Historic May moments through the years
Wreathes are seen amongst the statues at the Korean War Veterans Memorial during Memorial Day weekend in Washington on May 27, 2023. Memorial Day, which honors U.S. military personnel who died while in service, is held on the last Monday of May. Photo by Bonnie Cash/UPI | License Photo
