EU Fines Temu 200 Million Euros for Alleged DSA Risk Assessment Failures
European Union regulators fined Chinese online retailer Temu 200 million euros for failing to protect consumers from illegal goods. The penalty is the second issued under the Digital Services Act.
androidheadlines.comEuropean Union regulators fined Chinese online retailer Temu 200 million euros, or $232 million, on May 28, 2026, after an investigation found the platform failed to protect consumers from illegal products including toxic or hazardous toys and unsafe electronics.
The 27-nation bloc's executive arm issued the penalty under the Digital Services Act. The DSA requires online platforms to keep users safe from harmful content or dodgy goods under threat of hefty fines.
This is the second fine issued under the three-year-old DSA. The first was a $120 million penalty issued last year against Elon Musk's social media site X. The EU fine follows preliminary findings in 2025 that Temu was exposing consumers to a high risk of non-compliant products such as baby toys and small electronics.
Investigators carried out a mystery shopping exercise that found non-compliant products including many electronic device chargers that failed basic safety tests. They also found a very high percentage of baby toys that posed safety risks due to chemicals exceeding safety limits or parts that could come off posing a suffocation risk.
The European Commission said Temu failed to identify, analyze and assess the systemic risks of illegal goods on its platform and the resulting harm to European consumers.
Failing to do proper risk assessments is a particularly serious breach of the DSA, the commission stated. Temu disagreed with the decision and considered the fine disproportionate. The decision relates to the commission's first DSA evaluation of Temu in 2024 and does not reflect the current state of our systems, the company said.
Temu engaged constructively with the Commission throughout the process and has since taken further steps to strengthen risk assessment, platform governance, and user protection, it said in a statement. Temu offers cheap goods from clothing to home products shipped from sellers in China. , which also owns the Chinese e-commerce site Pinduoduo.
Temu has until the end of August to submit an action plan to remedy the problem. It could face additional daily, weekly or monthly fines if it fails to comply.
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