The European Commission has announced that Chinese e-commerce giant Temu has breached the Digital Services Act (DSA), a major piece of EU legislation designed to protect consumers online.
According to preliminary findings released Monday, Temu has failed to properly assess and control the risks of illegal products sold on its platform. The investigation into the company began in October 2024, with a focus on consumer safety and platform responsibility.
The Commission stated there is a “high risk” that European users encounter illegal goods, including unsafe baby toys, faulty electronics, and fake safety equipment like helmets. Temu’s original risk assessment was labelled inadequate and based on vague industry data rather than real platform-specific analysis.
EU Tech Commissioner Henna Virkkunen criticised Temu’s approach, saying it “falls far short” of what is required. “Consumers’ safety online is not negotiable,” she stressed. “EU laws are here to protect people and ensure a fair digital market.”
Temu can now respond in writing to the accusations. If the breach is confirmed, the company could face a fine of up to 6% of its global annual turnover.
Temu told Euronews it is “cooperating fully” with the EU investigation.
The Commission is also reviewing other concerns, including Temu’s use of addictive design features, poor transparency around product recommendations, and limited access for researchers.
Consumer group BEUC earlier found toxic toys, dangerous lava lamps, and unreliable helmets being sold on Temu’s website.
Investigations into other platforms, including Facebook, Instagram, Shein and X, are still ongoing.
