BRUSSELS — The European Commission fined Temu €200 million on June 26, 2025, for failing to prevent the sale of illegal and dangerous products on its platform. The penalty followed a 19-month investigation that found consumers were very likely to encounter unsafe items, including baby toys and electronics, while shopping on the site.

The investigation revealed that Temu did not adequately identify, analyze, or assess systemic risks posed by illegal goods, leaving European consumers exposed to harm. An unpublished mystery shopping exercise conducted for the Commission found a high percentage of unsafe baby products and a very high percentage of dangerous chargers for sale. Investigators specifically identified baby toys with excessive chemical levels or detachable parts posing suffocation hazards, as well as chargers that failed basic safety tests and could cause burns, electric shocks, or fire.

Henna Virkkunen, European Commission vice-president who leads on tech regulation, said: '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.'

The Commission also criticized Temu’s website design and noted that its recommender systems and influencer promotions could amplify dissemination risks of illegal products. A senior EU official said the commission found a particularly serious breach of the Digital Services Act related to an inadequate risk assessment Temu carried out in 2024. The official added that the fine was proportionate and that other parts of the investigation into Temu, which could also lead to financial penalties, were continuing.

Temu disputed the findings. A spokesperson for the company 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 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.' The company added it was reviewing the decision carefully and considering all available options.

Temu has until August 28 to submit an action plan to the European Commission detailing how it will address the violations. The €200 million fine is the second—and highest—ever issued under the EU’s Digital Services Act, which has applied to major global tech firms since February 2024 and allows penalties of up to 6% of a company’s global turnover. Temu, owned by PDD Holdings Inc., reported $54 billion in global revenues in 2024.