Chinese online retailer Temu hit with $232 million fine over unsafe toys and electronics
AP News • • general
Key Points:
- The European Union fined Chinese online retailer Temu 200 million euros ($232 million) for failing to protect consumers from illegal and unsafe products, including toxic toys and unsafe electronics, under the Digital Services Act (DSA).
- The EU investigation found Temu did not adequately identify or assess the risks of illegal goods on its platform, exposing consumers to significant safety hazards, as revealed by a "mystery shopping exercise" that uncovered non-compliant products.
- Temu, which has 92 million users in the EU and is owned by PDD Holdings Inc., disagreed with the fine, calling it "disproportionate," and stated it has since improved its risk assessment and user protection measures.
- The European Commission emphasized that risk assessments must be thorough and evidence-based, warning Temu to comply with the law by submitting an action plan by the end of August or face additional fines.
- This penalty marks the EU's first DSA evaluation of Temu in 2024, highlighting the bloc's commitment to enforcing digital safety rules on online marketplaces.