WASHINGTON (dpa-AFX) - The European Union has hit the Chinese-owned online retailer Temu with a EUR200 million ($232 million) fine after regulators discovered a slew of illegal and potentially dangerous items on its platform, like unsafe baby toys and faulty chargers.
The European Commission pointed out that Temu didn't properly assess and manage the risks to consumers, which goes against the rules laid out in the EU's Digital Services Act for Very Large Online Platforms. Their investigation has been ongoing since October 2024.
During the probe, independent tests revealed that many chargers bought through Temu didn't meet basic electrical safety standards. On top of that, several baby toys were found to have excessive chemical levels or parts that could pose choking hazards.
EU tech commissioner Henna Virkkunen stated that this penalty is meant to send a 'very strong message' about the responsibilities online marketplaces have in maintaining consumer safety.
Temu has until August 28 to submit an action plan outlining how it'll fix these issues, after which regulators will evaluate whether the company has met compliance standards.
In response, Temu expressed disagreement with the ruling, deeming the fine excessive. They argue that the findings reflect their practices in 2024, not what they're doing now. The company is currently reviewing the decision and exploring its options.
This fine marks the second significant penalty under the Digital Services Act, following last year's EUR120 million fine against X.
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