The European Commission has fined Temu €200 million ($232.8 million), saying the Chinese online shopping platform failed to properly assess the risks posed by illegal products on its site.
Here is what shoppers need to know.
Why was Temu fined?
EU regulators said Temu broke the rules of the Digital Services Act (DSA), a law that has been in force since February 2024 and sets strict standards for large online platforms.
The European Commission said Temu's assessment of the risks posed by illegal products on its platform was too vague, not based on solid evidence and not comprehensive. Regulators said consumers in the EU were highly likely to encounter illegal items when shopping on Temu.
Why is Temu under scrutiny?
The online marketplace, where various companies sell countless goods, has been active in Europe since spring 2023 and has attracted much attention with rock-bottom prices and steep discounts. Products are often delivered directly from the manufacturer to the customer.
The platform has been criticized by politicians, trade representatives and consumer protection advocates pointing to poor product quality, inadequate checks for safety and toxic chemicals and unfair competitive conditions.
The European Commission is now citing test purchases carried out last year where a "very high percentage" of chargers selected for testing failed basic safety tests.
A high percentage of baby toys tested meanwhile either exceeded chemical limits or posed a choking hazard because of detachable parts.
Temu is calling the fine disproportionate and said the decision was based on its 2024 risk assessment, which it said no longer reflected the current state of its systems. The company says it will continue to work with the European Commission and that it gives European consumers access to a "wide range of affordable products."
Could there be more fines?
Yes. If Temu does not pay the fine and fix the problems identified, the European Commission could impose additional daily fines on top of the €200 million penalty. Regulators are also separately investigating whether Temu is restricting researchers' access to data and whether it is doing enough to stop illegal products being sold on its platform. Chinese rivals AliExpress and Shein are also under investigation.
Will shopping on Temu get more expensive?
Possibly. From July, a €3 charge will apply to every parcel shipped to the EU with a goods value of up to €150. This is a temporary measure. From around 2028, all goods imported into the EU are expected to be subject to customs duties from the first euro.
A further handling fee for online orders imported into the EU is also planned from November 1, though this has not yet been formally adopted and the fee level has not been set. The Chinese Chamber of Commerce to the EU has warned that strict enforcement of rules could lead to higher import costs and inflationary pressure in Europe.
