On 28th May, the European Commission announced a €200 million fine against Temu for breaches of the Digital Services Act (DSA), specifically relating to failures in assessing and mitigating risks linked to illegal products sold on its platform.

According to the Commission, Temu did not adequately identify, analyse, or assess the systemic risks associated with illegal and unsafe products being offered to EU consumers. The investigation found that consumers were highly likely to encounter non-compliant items, including chargers failing basic safety tests and baby toys containing hazardous chemicals or posing suffocation risks.

The Commission also criticised Temu’s 2024 risk assessment for:

• relying on generic eCommerce sector information rather than platform-specific evidence;
• underestimating the frequency of illegal products encountered by EU consumers; and
• failing to properly assess how recommender systems and influencer-driven promotions could amplify the spread of illegal products.

Under the DSA, Very Large Online Platforms are required to conduct robust risk assessments and implement effective mitigation measures.

Temu has until 28 August 2026 to submit an action plan outlining how it will address the identified shortcomings. Failure to comply may result in additional penalty payments.

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The full European Commission press release is available here:https://ec.europa.eu/commission/presscorner/detail/en/ip_26_1178

This case represents another significant enforcement action under the DSA and highlights the EU’s increasing focus on marketplace accountability, consumer safety, and platform compliance.