𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Online retailer Temu has been hit with a fine imposed by the European Commission for failing to stop the sale of allegedly dangerous products.

The Chinese owned retailer was fined €200m (£175m) for selling faulty chargers and unsafe baby toys on its app.

The EC said the company had “failed to diligently identify, analyse and assess the systemic risks” of the products and the harm they could cause to consumers.

Temu is no stranger to controversy. A 2023 report by the US House Select Committee said there was an “extremely high risk” of forced labour in the company supply chains.

It also has a legal battle with rival Shein over alleged copyright infringement.

The EU said it had sent Temu, which was originally short for Team Up, Price Down, a strong message.

The European Commission vice-president Henna Virkkunen, said: “Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive. It leaves regulators, users and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu. Now it is time for Temu to comply with the law.”

A Temu spokesperson said: “We disagree with the European Commission’s decision and consider the fine to be disproportionate. We are reviewing the decision carefully and considering all available options.”

The EU’s 19-month investigation found that some baby toys posed safety risks and many of the chargers failed electrical safety tests.

Temu has until August 28 to address the failures – and pay the fine. The company says the fine relates to 2024 and that it has since improved its systems.

Sue Davies, Which? Head of Consumer Protection Policy, said: “The EU’s decision to fine Temu to the tune of €200 million is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms.

“Countless Which? investigations have exposed how Temu and other platforms seem unwilling to exercise sufficient due diligence to protect their users from unsafe products.”

Last year a three-year old girl’s hair was ripped out by an electric brush bought on Temu.

The company said at the time: “We are deeply concerned to hear about this incident and wish the child a full and speedy recovery.”

Temu was founded by Colin Huang in 2022 and now operates in 90 countries. His wealth is estimated at between $33bn and $44bn (£32bn).

Temu’s parent company PDD Holdings had global sales of £40bn in 2024.

In terms of its business model, it is most often compared to Amazon since it allows vendors to sell and ship directly to consumers.

In 2023, five Temu ads were banned in the UK by the Advertising Standards Authority for showing a young girl in a bikini.

The €200m fine is one of the biggest ever imposed under the EU’s Digital Services Act.

Elon Musk’s X was fined last year for “deceptive” verification badges and lack of transparency over advertising.