Temu Under EU Investigation for Selling Dangerous and Illegal Products, Faces Potential Massive Fines

The European Union has launched an investigation into Chinese-owned e-commerce giant Temu, accusing the company of failing to prevent the sale of illegal and dangerous products including hazardous baby toys and unsafe electronics.

In a statement on Monday, the European Commission said Temu may have violated the Digital Services Act (DSA), a sweeping regulation that sets strict rules for digital platforms operating in the EU.

“There is a high risk for consumers in the EU to encounter illegal products on the platform,” the Commission said, citing vague and inadequate safety assessments submitted by Temu in October 2024.

According to preliminary findings, the company did not conduct proper risk assessments nor implement necessary consumer protection measures. A mystery shopping investigation uncovered widespread access to non-compliant and unsafe items, especially in categories like children’s products and small electronics.

Temu, launched in the EU in 2023, has rapidly grown to over 93 million monthly users across the 27-member bloc. But its soaring popularity now comes under threat. If found in violation of the DSA, Temu could face fines of up to 6% of its global annual revenue and be forced to revamp its platform design and safety protocols.