Chinese e-commerce giant Temu has been fined £173 million for selling unsafe baby products and electronics. The European Union conducted an investigation revealing that Temu failed to ensure customer safety by selling hazardous goods. These included baby toys with excessive chemicals and phone chargers that did not meet safety standards.
Temu expressed disagreement with the decision, calling the fine disproportionate. This penalty is the largest ever imposed under the EU’s Digital Services Act, which mandates online companies to safeguard consumers from harmful items.
With 13 million active users in the UK and 130 million in the EU, Temu operates from China and offers a wide range of products, from affordable clothing to gardening supplies. The platform has until the end of August to present a corrective action plan. Failure to comply may result in additional fines.
EU tech commissioner Henna Virkunnen criticized Temu’s risk assessment, stating it lacks specificity and evidence, leaving regulators and the public unaware of the full extent of harm posed by illegal products. Virkunnen emphasized the need for Temu to adhere to regulations.
This fine follows reports from consumer groups across Europe concerning dangerous products sold by Temu, such as hazardous dummy chains and jewelry containing harmful metals like lead. In 2024, Temu’s parent company, PDD Holdings, reported global revenues of £40 billion, which included earnings from the popular Chinese e-commerce site Pinduoduo.
Temu has been under scrutiny since October 2024 to determine if it has fulfilled its obligations as a Very Large Online Platform under EU law. Temu was contacted for comment.