According to the European Commission, the company did not do enough to prevent dangerous and illegal products from reaching consumers via the platform. EU regulations require companies to assess consumer risks in advance and take measures to prevent issues.
The Commission states that Temu did not sufficiently investigate the risks of products offered through its platform. As a result, consumers were exposed to items that did not meet safety regulations.
The investigation involved test purchases, where products were ordered through the platform and then examined for possible safety problems.
Promotion
Unsafe Toys
Checks revealed that several chargers failed to meet basic electrical safety requirements. Safety issues were also identified with toys sold via the platform.
Chemical substances exceeding legally permitted limits were found in some of the tested toys. Additionally, some products contained small loose parts that could pose a choking hazard.
The European Commission concluded that Temu had insufficient oversight of these risks and did not do enough to protect consumers. This was the main reason for the sanction.
Recovery Plan
Besides the fine, Temu must develop a plan to address the identified shortcomings. The Commission will then assess whether the proposed measures sufficiently resolve the issues. Temu has stated that it disagrees with the decision. The company calls the fine disproportionate and is investigating which steps it can take next.
This is one of the highest fines the EU has imposed so far under the European DSA internet law. Previously, the EU threatened very large fines for American tech companies and their social media platforms (such as Twitter and Facebook), but they adjusted their algorithms and usage rules accordingly.