In a statement, the European Commission's 2024 risk assessment accuses Temu of failing to adequately identify, analyse, and assess the systemic risks posed to consumers in the European Union (EU) by the sale of illegal products on its platform.

Based on evidence from its investigation into Temu, the European Commission states that EU consumers are highly likely to encounter illegal items for sale on the Chinese online retail platform.

Detecting illegal products

Among the detected illegal products, the European Commission reports that a high percentage of tested baby toys pose safety risks ranging from moderate to severe, as they contain chemical substances that exceed legal safety limits or pose choking hazards due to detachable parts.

Similarly, analysts found that a very high percentage of the chargers failed basic safety tests, while they also identified jewellery that posed safety risks.

The EU executive emphasises that the risk assessment conducted by Temu in 2024 fails to meet the standards established by the European Digital Services Act (DSA) and "relies on general information regarding the risks associated with the e-commerce sector" rather than being grounded in "specific evidence concerning Temu's own service."

This risk assessment, the executive continues, "seriously underestimates the frequency with which EU consumers are likely to encounter illegal items."

Aggressive marketing strategy

The European Commission further accuses the Chinese platform of "failing to adequately assess" how the design of its service, including its recommendation systems and product promotion programs involving affiliated influencers, could heighten the risks of disseminating illegal products.

This is the highest fine ever imposed by the European Commission under the Digital Services Act; the second-highest, €120 million, was levied against the social network X (formerly Twitter), owned by tycoon Elon Musk, in December 2025.

The EU executive notes that the fine amount was calculated based on "the nature of the infringement, its severity in terms of the number of affected users, and its duration."

"The absence of adequate risk assessments, one of the fundamental pillars of the Digital Services Act's architecture, constitutes a particularly serious infringement," the European Commission notes.

Should it choose not to appeal, Temu now has three months to pay the fine; furthermore, it must submit an action plan to the European Commission by 28 August detailing how it intends to rectify the identified shortcomings, which will subsequently be subject to an opinion from the European Digital Services Board.

“The Commission will then have another month to adopt a final decision and establish a reasonable period for its implementation,” the executive states, warning that if Temu does not respect this final decision, it may have to pay “periodic financial penalties.”

This fine was applied as part of an investigation opened in March 2024 by the European Commission into Temu and is limited to the shortcomings identified in Temu's 2024 risk assessment.

As part of this investigation, the European Commission is also evaluating other issues, such as the platform's “additive design,” the recommendation systems, and the risk assessments carried out by Temu in subsequent years, and may also impose fines for any of these matters.