The European Commission has fined Temu €200 million under the Digital Services Act (DSA) for failing to properly assess and mitigate the risks linked to illegal products sold on its platform in the EU.

According to the Commission, Temu underestimated how frequently European consumers could encounter unsafe or non-compliant products. A mystery shopping exercise found that many chargers failed basic safety tests, while several baby toys posed medium to high safety risks due to hazardous chemicals or choking hazards.

Regulators also criticised Temu’s 2024 risk assessment for relying on broad eCommerce industry data instead of platform-specific evidence and for failing to evaluate how recommendation algorithms and influencer promotion programmes could amplify the spread of illegal products.

Under the DSA, Very Large Online Platforms (VLOPs) must conduct detailed systemic risk assessments and implement mitigation measures. The Commission described Temu’s failure to do so as a “particularly serious infringement.”

The decision is relevant for online marketplaces and digital platforms operating in Romania and across the EU, signalling stricter enforcement of product safety, platform accountability and consumer protection obligations under the DSA.

Temu must submit a compliance action plan by 28 August 2026. Failure to comply could lead to additional periodic penalty payments.