The European Union has fined Chinese online retailer Temu €200m ($232m; £173m) for selling illegal products such as dangerous baby toys and faulty chargers on its platform.
The European Commission said the company “failed to properly identify, analyse and assess systemic risks“ of the products and the harm they could cause to consumers.
Temu has been under investigation since October 2024 into whether it is fulfilling its obligations as a designated very large online platform under EU law.
The online retailer said it disagreed with the decision and considered the fine disproportionate, and was now considering its options.
The investigation involved a mystery shopping exercise conducted by an independent testing organisation, which found that a high percentage of chargers purchased through Temu failed basic electrical safety tests. A high percentage of baby toys were also found to pose safety risks, contain chemicals above legal limits or have small detachable parts that pose a choking hazard, Euronews reported.
In addition to paying the fine, Temu must submit an action plan to address the shortcomings by August 28. The Commission then has two months to decide whether the company has done enough to comply.
European Commissioner for Technology Henna Virkunen told reporters that the decision was intended to send a “very strong message” to Temu.
A Temu spokesman said in a statement that the retailer respected the need for clear and consistent rules, but that the decision applied to 2024 and did not reflect the current state of its systems.
“We disagree with the European Commission’s decision and consider the fine to be disproportionate,” they said.
“We are reviewing the decision carefully and considering all available options.”
But British consumer watchdog Which? praised the decision and called on the UK to follow suit.
“The EU's decision to fine Temu €200 million is a clear example of the tough action needed to hold online marketplaces accountable for unsafe products on their platforms“, said Sue Davies, head of consumer policy at Which?.
“The UK government should follow the EU's lead and use its new powers under the Product Regulation and Metrology Act to make online marketplaces legally liable for unsafe products.“