EU Cracks Down On Temu Over Illegal Product Sales, Signals Robust Consumer Protection.
The European Commission has launched a significant enforcement action against Temu, the Chinese e-commerce giant, accusing it of breaching the Digital Services Act (DSA) by failing to prevent the sale of illegal and unsafe products. Announced on Monday, 28 July 2025, the preliminary findings highlight concerns over non-compliant items, such as substandard baby toys and electronics, posing risks to millions of European consumers. The move underscores the EU’s commitment to strengthening online marketplace regulations, with Temu facing potential fines of up to 6% of its global annual turnover.
Since entering the European market in 2023, Temu has rapidly grown, boasting 93.7 million monthly active users across the 27 EU countries. Its low prices and aggressive marketing, including gamified features like spinning wheels and flash sales, have driven its popularity. However, the Commission’s investigation, initiated in October 2024, revealed that Temu’s risk assessment was inadequate, relying on generic industry data rather than platform-specific analysis. A “mystery shopping” exercise confirmed that consumers are highly likely to encounter illegal products, prompting regulators to act.
Henna Virkkunen, the EU’s Executive Vice-President for Tech Sovereignty, Security, and Democracy, stated, “We shop online because we trust that products sold in our Single Market are safe and comply with our rules. Temu’s practices fall short of the standards required by the DSA.” The investigation also scrutinises Temu’s addictive design features, which may exploit consumer behaviour, and its failure to prevent rogue traders from reappearing after suspensions.
Temu, owned by PDD Holdings, has until September 2025 to respond to the allegations. The company issued a statement pledging full cooperation and emphasising its investment in compliance teams and AI-driven monitoring. However, consumer advocacy groups, including the Bureau Européen des Unions de Consommateurs (BEUC), have raised alarms, with tests revealing that 93% of sampled Temu products, including cosmetics and toys, failed EU safety standards.
The EU’s action is part of a broader push to ensure digital platforms prioritise consumer safety. Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age, stressed, “Our enforcement will guarantee a level playing field and ensure every platform respects the laws that keep our market safe.” The probe, supported by national consumer authorities and the Consumer Protection Cooperation Network, also examines Temu’s product recommendation algorithms and transparency obligations.
This development has sparked optimism among consumer groups, who see it as a step towards safer online shopping. The potential fine, which could reach billions given Temu’s global scale, signals the EU’s resolve to hold tech giants accountable. As the investigation progresses, it may set a precedent for how non-EU platforms operate in the bloc, fostering a safer and fairer digital marketplace for all.
