Temu hit with $232 million fine for “illegal products” flooding its platform

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Temu was fined €200 million by the EU because unsafe products, including baby toys with harmful chemicals and faulty chargers, were being sold on its website.

Temu launched in Europe in 2023, offering very cheap products shipped directly from China. Its rapid growth quickly drew the attention of European regulators. Because of its size, Temu is legally required to demonstrate that it isn’t selling unsafe products. While Temu provided information to regulators, it was deemed insufficient, resulting in a significant fine.

Temu becomes only the second platform fined under EU’s Digital Services Act

According to The Financial Times, the European Commission has fined Temu €200 million (about $232 million) because the company didn’t do enough to stop the sale of illegal items on its platform.

EU tech commissioner Henna Virkkunen stated that shoppers on Temu are highly likely to encounter products that don’t meet safety standards. While Temu has been fined for these compliance issues, the EU is also continuing to investigate whether the platform knowingly sells illegal items.

Shein and AliExpress are both under investigation, especially in France, which is strongly enforcing safety regulations after concerns were raised about products sold on the platforms that didn’t meet European Union standards.

Temu disagreed with the penalty, calling it excessive and arguing it didn’t accurately represent their current safety measures. They stated they’ve improved their internal controls and have until the end of August to provide a plan detailing these changes.

If regulators aren’t satisfied, the EU could fine companies up to 6% of their total yearly income worldwide. Plus, starting in July, a flat fee of €3 will be added to each package from outside the EU worth less than €150. This new fee specifically impacts companies like Temu that rely on low shipping costs to attract European customers.

Temu is just the second company to face penalties under the Digital Services Act. The EU previously fined Elon Musk’s X (formerly Twitter) $140 million for misleading verification practices. And like Shein, Temu has increased prices in the US recently due to new tariffs.

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2026-05-28 17:20