EU charges Temu for failing to prevent unsafe product sales

On July 28, 2025, the European Commission announced that it had charged Temu for not adhering to the EU's Digital Services Act. This act is designed to ensure the safety and protection of consumers online within the EU. The Commission's investigation revealed significant concerns regarding the high risks of encountering unsafe products on the Temu platform, including hazardous small toys and electronic devices. As a result, the European Commission has called out the platform for its inadequate risk assessment processes, suggesting that it does not meet the safety standards outlined in the Digital Services Act. Additionally, the EU is conducting a broader investigation into Temu's operational practices, which include examining the platform's addictive design, its recommender systems, and the overall transparency of its operations. The Commission's actions highlight the growing scrutiny that online platforms face regarding consumer safety and digital compliance. Temu has been given a set timeframe to respond to these allegations, although the exact deadline has not been disclosed. Consumers' safety online remains a top priority within the EU, as emphasized by the Executive Vice President for Tech Sovereignty, Henna Virkkunen, who stated that these laws are foundational for protecting users in the digital marketplace. Should Temu fail to remedy the highlighted issues, it could face severe penalties reaching up to 6% of its total worldwide turnover, illustrating the significant financial implications for the company. This situation illustrates a pivotal moment for online retailers in the EU as they navigate the complexities of adhering to strict regulations geared towards safeguarding consumer rights. The outcome of this investigation could potentially reshape the landscape for e-commerce platforms operating in Europe, as companies may need to re-evaluate their risk management strategies and compliance practices to align with the expectations set forth by EU legislation.