European Commission fines Temu €200 million under DSA
Consumer safety concerns drive major EU enforcement action against Temu.
The European Commission has imposed a €200 million fine on Temu after finding that the online marketplace breached obligations under the Digital Services Act by failing to properly assess and mitigate systemic risks linked to illegal products sold to consumers in the EU.
According to the Commission, Temu’s 2024 risk assessment did not meet DSA requirements because it relied on general information about the wider e-commerce sector rather than evidence specific to its own platform. Regulators also found that the company significantly underestimated the likelihood that the EU consumers would encounter illegal or unsafe products.
The investigation drew on mystery shopping exercises and information from customs and market surveillance authorities. Findings included chargers that failed basic safety requirements and baby toys that contained chemicals above legal limits or presented choking hazards.
Regulators also criticised Temu for failing to sufficiently assess how recommender systems and influencer promotion programmes could contribute to the spread of illegal products on the platform.
Temu must now submit a detailed action plan explaining how it will address the shortcomings identified by the Commission. The plan will be reviewed with the European Board for Digital Services before implementation requirements are set. Failure to comply could lead to additional penalties under the DSA.
The decision is part of a wider Commission investigation into Temu, including issues related to potentially addictive design, recommender systems, and data access for researchers.
Why does it matter?
The fine marks one of the most significant enforcement actions under the Digital Services Act against a major online marketplace. It shows that the DSA is being used not only to address illegal content, but also to require platforms to assess and reduce consumer safety risks linked to illegal and unsafe goods. The case reinforces the EU’s focus on proactive risk management by very large online platforms, including how marketplace design, recommendations, and influencer promotion can amplify the reach of harmful products.
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