The European Union has fined Temu 200 million euros under the Digital Services Act for failing to properly assess risks of illegal products on its marketplace, including dangerous toys, unlabeled electronics, and hazardous chemicals in clothing and jewelry, demonstrating that online platforms bear responsibility for product safety and regulatory compliance.
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EU fines Temu 200M euros for allowing sale of unsafe and illegal productsAdded:
The message from the EU to Teu is blunt.
>> The company has not properly assessed the risks of illegal products being sold on its marketplace.
>> A whopping 200 million euro fine for the lowcost Chineseowned shopping site.
>> Dangerous toys for kids, small electronics without proper label, clothes and jewelry containing harmful chemicals to name just a few. It's the largest fine imposed under the EU's digital services act, but still dwarfed by Teu's parent company's most recent annual profits of 14 billion euro. Teu told Global News it disagrees with the decision and regards the fine as disproportionate. It says it engaged constructively with the commission throughout the process and has since taken further steps to strengthen risk assessment, platform governance, and user protection, adding that it is reviewing the decision carefully and considering all available options.
Teu is a marketplace site which allows third-party manufacturers, mostly in China, to sell directly to customers.
small packages at very low prices but at huge scale.
>> The product is being shipped all over the world, not just in the EU, not just to Canada. It's the the sheer volume of product that is moving is is very very difficult to keep track of.
>> Teu signed up to Health Canada's voluntary product safety pledge in 2024.
It aims to detect and prevent the sale of unsafe products and to educate sellers and buyers. Health Canada did not respond to a global news question about actions it may take in response to the EU findings. Redman Shannon, Global News, London.
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