European Union has imposed a €200 million fine on e-commerce platform Temu for failing to properly assess and mitigate the risks of illegal and unsafe products being sold on its platform, in one of the most significant enforcement actions yet under the Digital Services Act (DSA). The

According to the Commission, the company did not carry out rigorous analysis of systemic risks affecting consumers in the European Union, particularly those linked to unsafe goods and misleading product promotion practices.

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, noted that, “Risk assessments are not box‐ticking exercises – they are the backbone of the DSA.“

“Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive. It leaves regulators, users, and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu. Now it is time for Temu to comply with the law.”
Henna Virkkunen

The investigation into Temu began on 31 October 2024, when the Commission opened formal proceedings focusing on the platform’s obligations to address systemic risks associated with illegal product dissemination. Preliminary findings were issued in July 2025, which pointed to significant shortcomings in the company’s risk assessment processes. The latest decision concludes those proceedings with a formal non-compliance ruling.

Authorities based their results on a variety of sources, including Temu’s 2024 and interim 2025 risk assessment studies, responses to formal Commission requests for information, and data from third-party groups. The study also relied on a mystery shopping exercise performed by an independent testing agency on behalf of the Commission, as well as data from EU customs and market surveillance authorities, which revealed high levels of non-compliance in numerous product categories.

According to the Commission, evidence gathered during its investigation suggests that EU consumers are highly likely to encounter illegal or unsafe products while using the platform.

Officials revealed that Temu’s 2024 risk assessment relied too heavily on generalised industry-wide risks rather than platform-specific data, failing to properly reflect the actual conditions on its marketplace.

A mystery shopping exercise carried out as part of the investigation revealed concerning results, including a high percentage of tested electrical chargers failing basic safety standards and a significant share of baby toys purchased during the exercise posing medium to high safety risks, including exposure to hazardous chemicals exceeding legal thresholds and choking hazards caused by detachable parts. The Commission also found that Temu significantly underestimated the frequency of non-compliant products appearing on its platform.

Regulators further concluded that the company did not adequately evaluate how its own platform design could amplify risks. In particular, the Commission criticised Temu’s recommender systems and promotional mechanisms involving affiliated influencers, arguing that these features may increase the visibility and spread of illegal or unsafe goods rather than reduce them.

Under the Digital Services Act, designated Very Large Online Platforms are legally required to carry out detailed systemic risk assessments and implement measures to mitigate identified risks.

The Commission stressed that these obligations form a central pillar of the EU’s digital regulatory framework, designed to ensure that large online platforms operate safely and transparently within the single market.

EU Orders Temu to Fix Compliance Failures

Alongside the fine, Temu has been ordered to submit a corrective action plan by 28 August 2026. The plan must outline how the company intends to address the deficiencies identified in its risk assessment processes and ensure full compliance with the DSA going forward.

Once submitted, the European Board for Digital Services will review the plan and issue its opinion within one month, after which the Commission will make a final decision and establish a timeline for implementation.

Officials warned that failure to comply with the decision could result in additional penalties, including periodic financial sanctions.

The Commission also confirmed that it will continue engaging with Temu to ensure that corrective measures are implemented effectively and that broader compliance with the DSA framework is maintained.

The case marks a major test of the EU’s Digital Services Act, which is designed to hold large online platforms accountable for the safety and legality of goods and content available to users. Regulators have increasingly focused on enforcement in recent years as online marketplaces continue to grow rapidly across Europe.

Temu has not yet issued a detailed public response to the fine, but it is expected to come under pressure to overhaul its internal risk assessment systems and strengthen oversight of sellers operating on its platform.