Temu fined $232 million for breaching EU rules on sale of illegal products
The Commission said Temu’s risk assessment missed platform-specific data and failed to account for recommender systems and influencer promotions that spread illegal products.
- The European Union fined Chinese retailer Temu €200 million after regulators determined the platform failed to protect consumers from illegal products.
- Preliminary findings from last year indicated Temu exposed consumers to high risks from non-compliant baby toys and electronics, prompting the European Commission to issue the penalty under the Digital Services Act.
- European Commission Executive Vice-President Henna Virkunnen said risk assessments are "not box ticking exercises," adding that Temu's assessment "underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive."
- Temu has until the end of August to submit an "action plan" to remedy violations, or it could face additional daily, weekly, or monthly fines for failing to comply with European Union law.
- Owned by PDD Holdings Inc., which also owns the Chinese ecommerce site Pinduoduo, the platform serves 92 million users in the European Union by offering affordable goods shipped directly from sellers in China.
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131 Articles
The Chinese giant, who sells clothing and objects at a very low price, is fined 200 million euros in historical terms.
On Thursday 28 May, the European Commission fined China's e-commerce giant for allowing the sale of illegal products. For marketing dangerous baby toys or defective loaders, Temu will have to pay a EUR 200 million penalty. The company contests this decision, calling the fine "disproportionate". - Dangerous toys, defective loaders... The EU imposes a EUR 200 million fine on Temu (Economy).
Temu will evaluate all available courses of action related to the fine imposed by Brussels which, according to the Chinese company, has a disproportionate monetary value.
EU fines Temu €200 million over unsafe products
Chinese online retailer Temu has been fined €200 million by the European Commission for failing to properly assess the risk of illegal and dangerous products being sold to EU consumers through its platform. The fine, imposed under the Digital Services Act (DSA), follows a Commission investigation into whether Temu had adequate systems in place to identify and reduce risks linked to unsafe goods, including faulty chargers, baby toys and jewellery…
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