EU Fines Temu €200 Million for Failing to Stop Sale of Illegal and Dangerous Products

The European Union fined Temu €200 million (approximately USD 232 million) on May 28, 2026, after regulators found the platform failed to stop the sale of illegal and dangerous products to consumers across Europe.

The penalty is the largest fine issued so far under the EU's Digital Services Act, which requires major online platforms to assess risks linked to their services and take steps to limit harm to users.

What Investigators Found

The Commission said Temu failed to adequately identify, analyze, and assess the systemic risks posed by illegal products on its platform. Regulators said the evidence indicates that consumers in the EU are very likely to encounter illegal items on Temu.

Before issuing the fine, EU regulators conducted a "mystery shopping" test. Investigators discovered multiple non-compliant products, including many electronic chargers that failed to meet basic safety standards. Investigators also found unsafe baby toys. Some contained chemical substances exceeding legal safety limits, while others posed suffocation hazards due to detachable parts.

Regulators also criticized Temu for not properly evaluating how its recommendation systems and influencer marketing partnerships could further amplify the spread of illegal goods.

The Commission said Temu's 2024 risk assessment fell short of the standards required under the law. It was based on general information about risks across the e-commerce sector as a whole, rather than specific evidence about Temu's own platform and operations.

How the Fine Was Calculated

While the EU could have hit Temu with a higher fine, a European Commission official said the amount was proportionate to the breach, since it concerned a risk assessment for one year where the conclusions were "clear-cut." Under the DSA, fines can go as high as six percent of a company's total worldwide annual turnover. Temu's revenues were USD 61.7 billion last year.

Thursday's fine is only the second imposed under the EU's Digital Services Act on content, after Elon Musk's X platform received a €120 million fine in December.

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy at the European Commission, said the ruling sent a firm message to the platform. "Risk assessments are not box-ticking exercises. They are the backbone of the DSA. Temu's risk assessment underestimates concrete risks, lacks specificity, is ungrounded in solid evidence, and is incomplete. It leaves regulators, users, and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu."

Temu's Response

Temu said it respects the objectives of the Digital Services Act and the importance of clear rules for the digital economy, but contests the Commission's decision and considers the fine to be "disproportionate." The company said it would "continue to work constructively with regulators" and is "carefully reviewing this decision and exploring all options available."

What Happens Next

Temu now has until August 28, 2026, to submit an action plan to the Commission setting out measures to remedy the breach of its risk-assessment obligations. The European Board for Digital Services will have one month from receipt of the plan to issue its opinion.

If Temu does not comply, it faces periodic penalty payments. It can also appeal the fine, as Elon Musk has already done in the EU courts following the fine against X.

The investigation has been ongoing for nearly two years, and additional penalties could still be imposed in the coming months.