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Temu logo.
Chinese online retailer Temu has been fined $232 million for not doing enough to stop the sale of illegal products, EU tech regulators said on Thursday, following the first part of a wide investigation.
Further penalties could follow in the coming months as a result of a nearly two-year investigation under the Digital Services Act that requires large online companies to do more to tackle illegal and harmful content on their platforms.
EU regulators investigated Temu following complaints by pan-European consumers’ organization BEUC and 17 of its national members.
The European Commission, the EU executive, said the company failed to diligently identify, analyse, and assess the systemic risks of illegal products sold on its platform and the resulting harm to consumers in the European Union.
It criticized Temu for not properly assessing how its recommender systems and product promotion programs by affiliated influencers could amplify the risks of sales of illegal products.
The Commission gave Temu until August 28 to deliver an action plan that regulators will assess, with a decision on whether the company has done enough to comply with the DSA due in two months’ time.
