EU Commission imposes fine on Temu

Yesterday, the European Commission imposed a fine of EUR 200 mio on the Chinese online platform Temu under the Digital Services Act (DSA). The Commission stated that the company had failed to diligently identify, analyse and assess the systemic risks posed by illegal products being offered on its platform and the resulting harm to consumers in the European Union.

The evidence available to the Commission suggested that consumers in the EU were likely to encounter illegal items on Temu. Temu’s risk assessment of 2024 falls short of the standards laid out in the Digital Services Act. A press release from the European Commission states, among other things, that Temu had seriously underestimated how often consumers in the EU are likely to encounterillegal items. A mystery shopping exercise showed that 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.