EU slams Temu with massive €200 million fine after finding dangerous toys and illegal products on app

• EU fined Temu €200 million over illegal and unsafe products.

• Investigators found dangerous toys and defective electronics on the platform.

• Authorities say consumers were exposed to serious safety risks.

• Temu says the fine is unfair and insists it has improved safety measures.

The European Union has fined Chinese-owned online shopping platform Temu €200 million (about $232 million or over ₦350 billion) for failing to stop the sale of illegal and unsafe products on its platform.

The massive penalty was announced by the European Commission after an investigation found that consumers in Europe were “very likely” to come across dangerous or illegal items while shopping on Temu.

According to EU regulators, some of the products discovered during investigations included unsafe baby toys, defective phone chargers and other items that failed to meet European safety standards.

Authorities said several tested products contained dangerous chemicals, choking hazards and electrical safety risks that could harm consumers, especially children.

The European Commission accused Temu of failing to properly identify and control the risks linked to illegal products being sold through third-party sellers on the platform.

In a statement, the EU said:

“The company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform.”

The fine is one of the biggest penalties issued so far under the European Union’s Digital Services Act (DSA), a major law introduced to force large tech companies and online platforms to better protect users and remove illegal content or products.

Temu, which became extremely popular globally for its cheap products and heavy online advertising, reportedly has more than 130 million users in Europe alone since entering the market in 2023.

The platform has faced increasing scrutiny in different countries over concerns about counterfeit goods, poor product quality and unsafe items sold by some merchants.

Reacting to the penalty, Temu reportedly described the fine as “disproportionate” and said the decision does not reflect improvements the company has made to its safety and compliance systems.

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The EU has now directed the company to submit an action plan showing how it intends to fix the identified problems and strengthen consumer protection measures.

The development has further intensified global debates over regulation of fast-growing e-commerce platforms and the safety of low-cost products sold online.