The European Union has imposed a €200 million (£173 million) fine on Temu, the Chinese-owned online retailer, for failing to prevent the sale of illegal products on its platform. The penalty follows a 19-month investigation by the European Commission, which found that the company did not adequately assess the risks of illegal items circulating on its marketplace during an annual review—a legal requirement under EU law.
Risks to Consumers
According to the European Commission, consumers were likely to encounter illegal or unsafe products, including baby toys and electronics, on Temu's website. The investigation highlighted systemic failures in the company's compliance with digital regulations designed to protect shoppers.
Temu's Response
Temu has stated that it disagrees with the decision and considers the fine disproportionate. The company is currently reviewing its options and may appeal. A Temu spokesperson said: "We disagree with the European Commission's decision and consider the fine to be disproportionate. We are reviewing the decision carefully and considering all available options."
Action Plan Required
In addition to the fine, Temu must present an action plan by August 28 to address the identified failures. The European Commission will then have two months to decide whether the company has taken sufficient corrective measures.
Reaction from Consumer Advocates
Sue Davies, Head of Consumer Protection Policy at Which?, welcomed the fine, stating: "The EU's decision to fine Temu to the tune of €200 million is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms. Countless Which? investigations have exposed how Temu and other platforms seem unwilling to exercise sufficient due diligence to protect their users from unsafe products."
Davies urged the UK government to follow the EU's example and use new powers under the Product Regulation and Metrology Act to make online marketplaces legally responsible for dangerous products.
