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Temu, a Chinese online retailer, is being fined 200 million euros by the European Union for not being able to manage risks associated with its illegal and hazardous merchandise sold through its platform.

The 200 million fine, revealed on May 28, 2026, by the European Commission, represents one of the largest fines ever imposed since the introduction of the Digital Services Act (DSA) in the EU. The decision marks the first significant case of its kind under the new act dealing with physical products instead of digital services.

According to EU officials, Temu failed to conduct a proper risk assessment of how its platform poses any risks to customers. The investigation process took almost two years before reaching the final conclusion since the formal investigation was initiated in October 2024.

The case against Temu centers around systematic risk management. Large online service providers are obligated under the DSA to understand, evaluate, and mitigate risks associated with their services.

European Commission Launches Investigation into Temu Over Alleged Safety Failures and Inadequate Risk Assessment

Regulators indicated that Temu did not fully investigate the possibility of increased sales of prohibited or harmful products because of the company’s recommendation systems and programs promoting influencers. According to officials, Temu’s risk assessment did not include sufficient evidence, details, and scope.

European Union commissioner for technology Henna Virkkunen strongly criticized Temu. She stated that the company had underestimated certain risks and provided an incomplete and evidence-lacking assessment.

During the investigation, various issues to safety were discovered with the help of products that were sold via the online marketplace.

Anonymity mystery shopping was conducted to analyze items that were purchased at Temu.

European officials found out that most electronic chargers sold by Temu did not meet the required safety requirements. The regulator called the failure rate “very high”.

Moreover, baby toys sold on Temu turned out to have some issues. Certain toys included chemicals that exceeded the allowed maximum level. Some toys also presented a choking hazard due to small detachable parts.

The European Commission emphasized that such results prove the presence of considerable risks to the lives and health of consumers, namely families purchasing items intended for children.

The case was initiated due to complaints filed by BEUC, which is a European umbrella organization representing consumer groups. Complaints were also lodged by 17 member organizations of BEUC.

Temu has been opposed to the decision taken by the European Union.

Cooperation, Ongoing Reforms, and the Path Ahead Under the DSA

In its statement published on its official website, the company criticized the imposition of such a high fine. Temu claimed that the issue was connected with its first DSA risk assessment carried out in 2024, and changes had been implemented since then.

The company stressed that it cooperated with the European Commission in order to solve the problem.

Temu noted that it had introduced improvements concerning risk assessment processes, platform governance, and user protection.

The case is still open.

According to Article 75 of the Digital Services Act, the company should submit an action plan addressing the issues indicated in the document. The deadline for submission is August 28, 2026.

The next step will be an assessment by EU officials regarding Temu’s efforts.

Depending on the result of that assessment, another punishment might be delivered against the company, according to the DSA regulations where the fine amount is limited to 6% of a company’s global annual turnover.

Meanwhile, the EC is conducting other parts of its investigation regarding Temu.

The Digital Services Act and the Implications for Temu

In particular, regulators are analyzing the potential of the platform’s structure to encourage addictive behavior of users. At the same time, illegal products sold via Temu and research into Temu’s data access are among the other issues under discussion.

The fine itself is important for the industry as well.

This is the second fine to be delivered according to the provisions of the Digital Services Act, with the first one being applied to X, a social platform controlled by Elon Musk.

The special nature of the case is that it deals with tangible products for consumers. It illustrates how the EU will take advantage of the Digital Services Act to regulate not only the safety of communication and platform design but also the safety of consumer goods sold on digital marketplaces.

This decision certainly delivers a message to the e-commerce companies like Temu. The EU regulators expect them to be proactive about managing risks when millions of consumers rely on their platforms to purchase everyday items.