Temu slapped with $232M EU fine over illegal products

May 28 2026

Chinese online retail giant Temu has been fined €200 million (US$232 million) by European Union regulators for failing to prevent the sale of illegal and unsafe products on its platform under the bloc’s Digital Services Act (DSA).

The penalty, announced on Thursday by the European Commission, follows a nearly two-year investigation into the company’s operations across Europe. Regulators found that consumers were exposed to a high risk of purchasing dangerous goods, including unsafe electronics, toxic toys and products that failed to meet EU safety standards.

According to investigators, “mystery shopping” exercises uncovered hazardous baby toys, faulty chargers and products containing banned chemicals being sold through the platform. EU officials said Temu failed to properly assess and reduce the risks linked to illegal listings and also criticized the company’s recommendation algorithms and influencer-driven promotions.

The fine marks one of the largest enforcement actions under the Digital Services Act, the EU’s sweeping online safety law designed to force major digital platforms to better protect users and crack down on harmful or illegal content and products.

Temu became subject to the stricter DSA rules after being designated a “Very Large Online Platform” in 2024 due to its massive European user base.

EU regulators have given Temu until late August to submit a compliance action plan outlining how it intends to address the violations and strengthen consumer protections moving forward. Failure to comply could lead to additional penalties.

Temu has pushed back against the ruling, describing the fine as “disproportionate” while maintaining that many of the issues identified related to earlier systems already improved by the company.