Temu fined $297 million by EU for sale of unsafe toys, chargers
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The European Commission blamed Temu’s recommendation algorithms for helping to spread illegal products.
PHOTO: EPA
BRUSSELS - Temu, the Chinese e-commerce giant, was fined €200 million (S$297 million) by the European Union for failing to stop the sale of unsafe baby toys and chargers on the platform.
The European Commission, which polices EU rules targeting tech firms, said in a statement that its investigation, which included making purchases on Temu in a “mystery shopping exercise”, often found products that posed a danger to buyers.
A high percentage of toys tested contained high levels of chemicals and were choking risks due to their detachable parts, the commission said.
Many chargers on sale failed basic safety tests, it added.
The regulator also blamed Temu’s recommendation algorithms for helping to spread illegal products.
“Temu has clearly been underestimating the risks of its services,” Ms Henna Virkkunen, the EU’s tech commissioner, told reporters in a briefing, sipping coffee from a novelty mug that read “It’s DSA O’ Clock”.
The company was fined under the Digital Services Act, which requires firms with more than 45 million EU users to survey and mitigate risks arising from their online platforms.
Violations can lead to fines as high as 6 per cent of a company’s annual global sales.
Temu, a subsidiary of Chinese-owned PDD Holdings, is only the second company to face enforcement under the law, following a December 2025 fine of €120 million against Mr Elon Musk’s X.
PDD became a leading player in China’s e-commerce arena by selling cheaper products to smaller cities and rural locations where more people order online, helping it surpass Alibaba Group Holding’s market value in 2023.
Its Temu brand competes with Shein and Amazon.com in the US and Europe. But its recent performance has been partially dragged down by a prolonged economic slowdown in China.
The commission said that Temu will now have two months to propose a plan addressing the EU’s concerns, which will require the commission’s sign-off ahead of implementation.
Failing to do that would result in the imposition of further periodic penalties.
Separately, Temu will be able to challenge the fine in court.
Temu did not immediately respond to a request for comment. BLOOMBERG
