Chargers that cause burns, toys with toxic chemicals for children, or even jewelry harmful to health. The European Commission imposed a fine of 200 million euros this Thursday on the Chinese giant Temu for critical failures in its security system when preventing the sale of illegal items to European consumers that can be potentially dangerous, with the intention that the platform increases its controls while it sweeps across the continent. Temu alone reached an average of 115 million monthly users in the community bloc last year.
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The popularity of Chinese platforms that sell online at ridiculously low prices has skyrocketed so much in Europe that Brussels has decided to target this model, not only because they can represent unfair competition for European companies, but also because they do not comply with the minimum European standards to identify illegal products for consumer health. The sanction specifically comes after a community investigation that confirms the company has violated the European Digital Services Act (DSA), by not adequately assessing or mitigating the systemic risks associated with the sale of illicit products on its platform.
Global Failures
“Risk analyses are not a mere box-ticking exercise,” protests Commissioner Virkunnen
The results of the European investigation into the quality of the offered products are alarming. Community technicians included “mystery shopping” exercises by a company contracted by the Commission that analyzed chargers failing basic safety tests, while various baby toys presented choking hazards due to detachable parts or contained chemical levels exceeding the legal limits of the community bloc. They also detected serious problems related to potentially dangerous jewelry and costume jewelry sold.
“You can imagine a whole series of possible non-compliances, ranging from incorrect marking or labeling to the presence of chemicals or fire risks that not only imply that electrical devices do not work, but can also cause serious harm such as burns,” indicates a community source, who says there was a “high percentage” of chargers and toys within this category.
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In summary, the collected evidence indicates that European consumers have a “high likelihood” of encountering illegal items when browsing Temu. Furthermore, the Commission believes that the platform’s very design, with its recommendation system and product promotion through influencers, can amplify the distribution of these potentially dangerous products in the EU.
What particularly upset the community technicians was the risk assessment report Temu presented in 2024, where it should have provided rigorous information about its security systems. Instead, the company limited itself to using generic sector information and produced a document “well below standards.” “Risk analyses are not a mere box-ticking exercise; they are the backbone of the DSA,” protested Henna Virkkunen, Executive Vice President for Technological Sovereignty, Security and Democracy, who believes this lack of seriousness from Temu has left regulators and users “in the dark” about the real magnitude of potential damages.
However, the 200 million euro fine is very low compared to the company’s turnover. It represents only 0.32% of Temu’s annual revenue in 2024 (61 billion euros). This is because, according to community sources, it is a relatively new company and, therefore, the duration of the violation of European laws is relatively short. Temu still has time to reconsider and submit, before August 28, a detailed action plan explaining to European regulators how it intends to remedy its errors. If it does not comply with European standards, the Chinese company could face periodic coercive fines. Brussels is investigating other aspects of Temu, such as its addictive design, something that could lead to further fines.
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