European Union (EU) has reportedly fined Chinese-owned online retailer Temu €200m (£173m; $232m) for allowing illegal products, including dangerous baby toys and faulty chargers, to be sold on its platform.
The European Commission 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 has been under investigation since October 2024 over whether it has been meeting its obligations as a designated Very Large Online Platform under EU law.
The investigation involved a mystery shopping exercise carried out by an independent testing organisation.
It found that a high percentage of chargers bought through Temu failed basic electrical safety tests.
A high proportion of baby toys were also found to pose safety risks, with chemicals above legal limits and small detachable parts that presented suffocation hazards, Euronews reported.
As well as paying the fine, Temu must present an action plan to address the failures by 28 August.
The Commission then has two months to decide whether the company has done enough to comply.
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EU tech commissioner Henna Virkkunen said the decision was intended to send a "very strong message" to Temu.
A Temu spokesperson said the retailer respected the need for clear, consistent rules, but that the decision related to 2024 and did not reflect the current state of its systems.
"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," they said.
Reacting, United Kingdom (UK) consumer organisation Which? praised the decision and urged the UK to follow suit.
"The EU’s decision to fine Temu to the tune of €200m is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms.
"The UK government should follow the EU’s example and make use of its new powers under the Product Regulation and Metrology Act to make online marketplaces legally responsible for dangerous products," said Sue Davies, head of consumer protection policy at Which?
The fine is only the second imposed under the EU’s Digital Services Act for content.
Reports insisted that the first was a €120m penalty against Elon Musk’s X social media network last December.
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