In a surprising move, the European Union has fined Temu 200 million euros ($232 million) for failing to stop the sale of illegal and unsafe products on its platform.
On Thursday, the European Commission announced the decision under the EU’s Digital Services Act (DSA).
As per EU officials, Temu failed to properly detect or lower risks associated with dangerous items being sold to customers in Europe.
The decision was made after investigators discovered products including unsafe baby toys with hazardous chemicals, defaulted phone chargers, and some jewellery failed to meet safety standards.
According to Temu, the company was "carefully reviewing the decision and assessing all options available to us", insisting it worked "constructively" with regulators.
The e-commerce based company further assured that it has “implemented additional measures to strengthen risk assessment, platform governance and user protection."
For those unaware, Temu made waves across social media since its launch in 2023 and now reportedly has around 130 million users across the region.
Due to its popularity, EU regulators stated the risks connected to illegal products could affect a large number of consumers.
The fine is one of the biggest penalties issued under the Digital Services Act so far.
Temu is required to submit a detailed action plan to the EU by August 28 explaining how it will enhance safety checks and platform monitoring.
Notably, if the company fails to comply, it could face additional financial penalties in the future.
