EU Fines Chinese E-Commerce Giant Temu €200 Million for Sale of Illegal Products
The European Union has imposed a record €200 million fine on Chinese online retailer Temu, citing its failure to prevent the sale of unsafe toys and electronics on its platform. The penalty, announced on May 28, 2026, marks the first major enforcement action under the EU’s Digital Services Act (DSA), a landmark regulation aimed at holding online platforms accountable for the safety of goods and content they host.
Background of the Fine
The European Commission’s investigation uncovered that Temu’s platform facilitated the sale of products that violated EU consumer safety standards, including toxic toys and hazardous electronics. The fine follows preliminary findings from 2024, which highlighted systemic risks posed by unregulated goods on the platform. The EU’s executive body emphasized that Temu failed to adequately identify, analyze, and mitigate these risks, exposing millions of European consumers to potential harm.
“Temu’s failure to ensure the safety of products sold on its platform is unacceptable,” said a Commission spokesperson. “This fine sends a clear message that online marketplaces must take responsibility for the goods they host.”
Temu’s Response
Temu, which operates under the parent company PDD Holdings Inc., has contested the decision, calling the fine “disproportionate.” The company stated that it has since implemented enhanced risk assessment protocols and platform governance measures. “