A baby toy that could suffocate a child. A phone charger that could electrocute you. Both were reportedly sold on Temu, and both are illegal in Europe.

Those discoveries are now at the centre of a massive crackdown by European regulators. The European Union has hit the Chinese-owned online retailer with a €200 million fine, roughly $232 million, for selling dangerous products and failing to adequately protect consumers. The investigation began in October 2024, when EU regulators sent independent testers on a “mystery shopping” exercise. What they found was alarming.

Many phone chargers purchased through Temu failed basic electrical safety tests. Some reportedly posed risks of overheating, sparking, or electrical failure.

Then came the baby toys. A high percentage allegedly contained chemicals above legal safety limits, while others featured small detachable parts that created potential suffocation hazards for children.

The European Commission said Temu had “failed to diligently identify, analyse and assess the systemic risks” posed by these products and the harm they could cause to consumers.

Temu disagrees with the fine and called it “disproportionate.” In a statement, a company spokesperson said the decision “relates to our first DSA assessment in 2024 and does not reflect the current state of our systems.” The company added that it has since taken further steps to strengthen risk assessment and user protection.

Temu currently has around 92 million users across the EU. The platform became popular largely because of its ultra-cheap products shipped directly from sellers in China, though regulators argue that rapid growth and low prices can also create safety risks if oversight falls behind.

Now, the EU has now given Temu until August 28 to submit an action plan explaining how it plans to address the issues. Regulators will then decide whether the company has done enough to comply.

EU tech commissioner Henna Virkkunen described the penalty as a “very strong message” to Temu.

This marks only the second major fine issued under the EU’s Digital Services Act. The first was a €120 million penalty issued against X last December.

Meanwhile, the UK consumer organisation Which? welcomed the decision. Sue Davies, head of consumer protection policy at Which?, said: “The EU’s decision to fine Temu to the tune of €200m is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms.”

She also urged the UK government to use its own new regulatory powers to hold online marketplaces legally responsible for unsafe goods sold through their platforms.

Temu says its systems have improved since 2024. European regulators, however, say the fine still stands, and more penalties could follow if the company fails to clean up the platform.

Temu could be fined by the EU for digital service violations
The EU says Temu hasn’t done enough to stop ‘illegal products’ from being sold on its marketplace.