Chinese shopping giant Temu has been slapped with a £173million fine for flogging dodgy baby gear and electricals.
A probe by the European Union found the retailer failed to protect customers by cashing in on dangerous clobber. Undercover investigators discovered baby toys containing chemicals above the legal limit and phone chargers that failed basic safety checks.
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On Thursday night, Temu said it disagreed with the decision and branded the fine disproportionate. The penalty is the second and highest-ever imposed under the EU’s Digital Services Act, which requires online firms to protect shoppers from harmful products.
Temu, which has some 13 million active users in the UK and 130 million in the EU, ships from China and sells everything from budget clothing to gardening supplies. The platform has until the end of August to submit an action plan to remedy the problem. It could be hit with additional daily, weekly or monthly fines if it fails to comply.
EU tech commissioner Henna Virkunnen said: “Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive. It leaves regulators, users, and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu. Now it is time for Temu to comply with the law.”
The fine comes after consumer groups across Europe previously reported a string of hazardous products from dummy chains long enough they could strangle a child to jewellery laced with dangerous metals like lead. Temu’s parent company PDD Holdings saw global revenues of £40 billion in 2024, which also included income from popular Chinese e-commerce site Pinduoduo.
Temu has been under investigation since October 2024 over whether it has been meeting its obligations as a designated Very Large Online Platform under EU law.
A spokesperson for Temu said: “Temu respects the objectives of the Digital Services Act and the need for clear, consistent rules across the digital economy. However, we disagree with the European Commission’s decision and consider the fine to be disproportionate. The decision relates to our first DSA assessment in 2024 and does not reflect the current state of our systems.
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“Temu engaged constructively with the Commission throughout the process and has since taken further steps to strengthen risk assessment, platform governance, and user protection. We will continue to engage with regulators in good faith and work toward a marketplace that serves consumers, businesses, and communities responsibly. We are reviewing the decision carefully and considering all available options.”
The Mirror