The European Commission, the EU’s executive arm, announced Thursday that it imposed the fine on Temu under the Digital Services Act (DSA), a wide-ranging regulatory framework adopted in 2022 that can levy hefty penalties on platforms that fail to curb illegal content or dangerous goods. Investigators concluded the Chinese-owned retailer, known for rock-bottom prices on everything from clothing to electronics, had not done enough to prevent the sale of products that failed to meet EU safety standards, including toxic toys and unsafe electronics, the Associated Press reported.
The EU’s move follows preliminary findings last year that flagged Temu for exposing consumers to a high risk of harm from items on its site. The investigation identified baby toys and small electronics as particular areas of concern.
The DSA came into effect in 2023 and empowers Brussels to fine online platforms up to 6% of their global annual revenue for systematic violations. The first penalty under the act was issued last year against X, then known as Twitter, for failing to adequately address hate speech and terrorist content. The Temu fine represents the law’s first application to an e-commerce platform rather than a social media company, signaling the EU’s broadening use of digital regulation to address the flood of consumer goods entering the bloc through discount online marketplaces.