The European Union has fined Chinese marketplace Temu €200 million for violating the Digital Services Act. The decision is related to the sale of unsafe goods, including children’s toys and chargers, on the platform.
According to data Bloomberg, the European Commission conducted an investigation into the secret purchases of goods on Temu. The inspection showed that some of the toys contained high levels of chemicals, as well as small detachable parts that could pose a danger to children. Chargers available on the platform also failed basic safety tests.
The European regulator also said that Temu’s recommendation algorithms contributed to the distribution of illegal products. The European Commission’s Executive Vice-President for Technological Sovereignty, Security and Democracy, Genna Virkkunen, criticized the company’s approach to risk assessment during a briefing.
“Temu clearly underestimates the risks of its services,” Virkkunen said.
Temu is the second company to be fined under the Digital Services Act. The first was Elon Musk’s social network X, formerly known as Twitter.
The Chinese company has two months to propose a plan to address the EU’s concerns. If it fails to comply, it could face additional periodic fines, while Temu has the right to appeal the decision in court.
