Chinese-owned online retailer Temu will pay a €200m (N318,940,000,000.00) fine for having illegal products, such as dangerous baby toys and faulty chargers, for sale on its platform.
Temu has been under investigation since October 2024 over whether it has been meeting its obligations as a designated Very Large Online Platform under European Union (EU) law.
The EU imposed the fine because the online retailer “failed to diligently identify, analyse, and assess the systemic risks” of the products and the harm they could cause to consumers.
“We disagree with the European Commission’s decision and consider the fine to be disproportionate,” a Temu spokesperson said.
The investigation involved a mystery shopping exercise carried out by an independent testing organisation, which found that a high percentage of chargers purchased through Temu failed basic electrical safety tests. It was also reported that a high proportion of baby toys posed safety risks, containing chemicals above legal limits or featuring small detachable parts that presented suffocation hazards.
In addition to paying the fine, Temu has to 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.
EU tech commissioner Henna Virkkunen told reporters that the decision was intended to send a “very strong message” to Temu.
