- The EU issues its second ever Digital Services Act fine to Temu after X
- This is the first of its kind that relates to physical products
- Electrical appliances and baby toys failed the tests, prompting an investigation
Chinese e-commerce giant Temu has been fined 200 million euros ($232 million) by the European Union for violating the Digital Services Act – a set of rules designed to keep consumers safe from harmful content and banned products.
Temu has become the second company to be hit with a DSA fine since it came into effect at the end of 2022, second only to X, which was hit with a 120 million euro fine.
This time the EU fine relates to the sale of prohibited and dangerous goods, including electronic chargers that failed basic safety tests.
Temu received a DSA fine of 200 million euros
European investigators carried out anonymous mystery shopping exercises on the platform to discover the dodgy chargers as well as a number of baby toys that posed safety risks either because of toxic chemicals or parts that created choking hazards.
In addition, the European Commission claimed that Temu failed to consider how recommendation systems and influencer promotions could “reinforce [the] proliferation risks of illegal products.”
“Temu’s risk assessment underestimates concrete risks, lacks specificity, is not based on solid evidence and is not comprehensive,” said Henna Virkkunen, EVP for Technical Sovereignty, Security and Democracy in the EU.
The company has now been given until 28 August 2026 to submit an action plan under Article 75 of the DSA – failure to do so could result in further fines.
A spokesman for Temu said so TechRadar Pro they believe the fine is “disproportionate”.
“We will continue to engage with regulators in good faith and work towards a marketplace that serves consumers, businesses and communities responsibly,” they added. “We are reviewing the decision carefully and considering all available options.”
Temu also stressed that “the decision concerns [its] first DSA assessment in 2024 and does not reflect the current state of [its] systems,” after “engaging constructively” to “strengthen risk assessment, platform governance and user protection.”
While this is the second DSA fine ever imposed, it is also the first of its kind for physical products. A previous X fine in late 2025 was related to the platform’s services, including its blue tick verification plans.
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