The European Commission has announced that Temu, an ecommerce platform, has failed to adequately assess the risks of illegal products available on its sites, breaching the Digital Services Act (DSA).
Regulatory Investigation and Findings
In October 2024, the Commission launched an investigation into Temu under the DSA. Preliminary findings, released on July 28, 2025, indicate that there is a significant risk of EU consumers encountering illegal products such as baby toys and small electronics through the platform.
According to the Commission’s statement, Temu’s risk assessment from October 2024 was insufficient. The company relied on generalized industry information rather than specific marketplace details. This approach may have resulted in ineffective measures against the spread of illegal goods.
The Commission highlighted that Temu is not meeting the stringent standards required by the DSA for user protection and safety online.
Potential Outcomes
Temu now has an opportunity to respond in writing to these findings. If a breach is confirmed, the regulator could impose fines of up to 6% of the company’s global annual turnover.
A Temu representative stated that their company is committed to fully cooperating with the EU Commission.
Continuing Investigation
The ongoing investigation also covers other potential breaches of the DSA, including the effectiveness of mitigation instruments, the use of addictive design features, and transparency in recommendation systems. The Commission is also concerned about data access for research purposes.
Tightened Controls for Chinese Retailers
Beyond probing Temu’s operations, the EU Commission announced plans to enhance customs controls on packages shipped from China by retailers like Shein and Temu at the beginning of the year. This move was intended to address a growing influx of Chinese products in the EU market, with a focus on preventing dangerous items from entering the region.
The agency suggested that lawmakers should consider phasing out the duty exemption for parcels valued under EUR 150, currently allowing foreign suppliers to sell goods without facing customs taxes.