Chinese e-commerce giant Temu faces a hefty fine of £173 million for selling unsafe baby products and electronics. The European Union investigation revealed that Temu neglected customer safety by selling hazardous items such as baby toys with excessive chemicals and faulty phone chargers.
Temu expressed disagreement with the fine, calling it unjustly high. This penalty marks the largest ever imposed under the EU’s Digital Services Act, aimed at ensuring online platforms protect consumers from harmful goods.
With around 13 million active users in the UK and 130 million in the EU, Temu operates from China and offers a wide range of products, from affordable clothing to gardening supplies. The company has until the end of August to present a corrective action plan. Failure to comply may result in additional fines on a daily, weekly, or monthly basis.
EU tech commissioner Henna Virkunnen criticized Temu’s inadequate risk assessment, emphasizing the need for compliance with regulations to safeguard consumers and the public from potentially dangerous products.
Consumer groups in Europe previously reported hazardous products sold by Temu, including items posing risks like choking hazards and toxic materials. The parent company of Temu, PDD Holdings, generated global revenues of £40 billion in 2024, which also included earnings from the popular Chinese e-commerce site Pinduoduo.
Under investigation since October 2024 for potential breaches of its obligations as a Very Large Online Platform under EU law, Temu was approached for comment but has not responded.
