Temu Hit With Fine in E.U. Over Sales of Unsafe Goods
The New York Times • • business
Key Points:
- The European Union fined Chinese e-commerce platform Temu 200 million euros ($232 million) for failing to prevent the sale of illegal and unsafe products, violating the EU’s Digital Services Act.
- The European Commission's investigation, initiated in 2024 after Temu's expansion into Europe, found a significant number of unsafe, counterfeit, or noncompliant goods, including chargers that failed safety tests and baby toys with hazardous chemicals.
- Temu must submit a corrective plan by August 28 and has the right to appeal the fine, with the company stating it will review the decision and engage with regulators in good faith.
- This is the second major fine under the Digital Services Act, following a $139 million penalty against X for transparency violations, indicating increased EU scrutiny on technology firms’ online practices.