- According to the Commission’s preliminary findings, Temu failed to conduct a proper risk assessment and implement safeguards against the sale of hazardous goods—particularly baby toys and small electronics
Temu, the rapidly growing e-commerce giant owned by China’s PDD Holdings, is under intense scrutiny from the European Union for allegedly selling illegal and dangerous products across its platform. The European Commission announced Monday that the company may have violated the Digital Services Act (DSA), the EU’s sweeping tech regulation aimed at protecting consumers online.
According to the Commission’s preliminary findings, Temu failed to conduct a proper risk assessment and implement safeguards against the sale of hazardous goods—particularly baby toys and small electronics. A mystery shopping investigation reportedly uncovered widespread access to non-compliant and unsafe items.
“There is a high risk for consumers in the EU to encounter illegal products on the platform,” the Commission stated, criticizing Temu’s October 2024 risk report as vague and lacking platform-specific analysis.
Launched in Europe in 2023, Temu has quickly become a major player in online retail, with over 93 million monthly users across the 27 EU member states. But the EU’s probe could have serious consequences. If Temu is found to have breached the DSA, it could face fines of up to 6% of its global annual turnover and be forced to overhaul its practices.
The investigation doesn’t stop at product safety. EU officials are also probing Temu for potentially manipulative design features and lack of transparency in its recommendation algorithms.
While Temu will have an opportunity to respond to the findings, the timeline for the final ruling remains unclear.
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