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Temu falls into line as EU backs its action plan after €200m fine

Source: AP Photo
– Copyright Copyright 2024 The Associated Press. All rights reserved
The Chinese-owned online retailer has promised stronger action to address several violations of the EU’s Digital Services Act, the European Commission said on Monday, following a €200 million fine in May.
The European Commission has said it has accepted Temu’s action plan to address several violations of the bloc’s Digital Services Act (DSA).
Temu has promised to carry out a risk analysis, to keep a close eye on measures to prevent the sale of illegal products on its platform and to step up its efforts if needed.
The Chinese retailer will also review how its recommender systems “may amplify the spread of illegal goods”, the Commission said.
In May this year, Temu was fined €200 million by the EU for allowing the sale of illegal products like dangerous baby toys and faulty chargers on its platform.
The fine came after a formal investigation launched in October 2024 into whether Temu was meeting its obligations as a designated Very Large Online Platform under the EU’s Digital Services Act.
Commission investigators said the platform failed to properly identify and address the risks posed by illegal and unsafe products sold to European consumers.
Today, Temu welcomed the approval of its action plan by European regulators. “We appreciate the Commission’s constructive engagement with us throughout the process,“ the company said in a statement.
The plan “stands as a clear testament to Temu’s commitment to investing in robust compliance infrastructure to ensure a safe, trustworthy shopping environment for all EU users”, it added.
The Chinese retail giant has 130 million users in the 27-nation EU, nearly a third of the bloc’s population, making it one of the biggest online retailers in Europe.
Temu is one of several ecommerce platforms dealing with the EU’s new €3 fees on low-value packages since July, while those worth less €150 had entered the bloc duty free beforehand.
The new packaging rules have seen imports, especially from China, slump by 30% to 40% since coming into force.
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