The European Union (EU) has fined Temu €200 million (~RM 924 million) for its long-standing failure to take sufficient steps to prevent the sale of illegal products on its platform. The fine follows a nearly two-year investigation into Temu under the Digital Services Act (DSA) with further fines likely to follow.
Among the illegal products sold on Temu were chargers that failed basic electrical safety tests, rock toys containing chemicals above safe levels and detachable components that could choke babies.
The EU said Temu failed to: identify and assess the systematic risk of selling illegal products, and assess how its influencer recommendation and promotion system could increase that risk. Temu was given until August 28 to come up with a DSA compliance action plan. Failure to do so could result in a fine of up to 6% of its global revenue. Temu is the second company to be fined after X for failing to comply with the DSA.
