Improve consumer protection: Temu announces changes after the EU fined millions
The Chinese online retailer Temu is reacting to an EU fine of 200 million euros for violations of the Digital Services Act.
Quick Look
- After a 200 million euro fine for a lack of consumer protection, Temu has submitted proposals for changes to the EU Commission.
- The company now has to adapt its algorithms and security controls within four months.
AI-generated summary
Why It Matters
The EU Commission has fined Temu €200 million for breaches of the Digital Services Act (DSA). The process has been ongoing for around two years.
The Chinese online retailer Temu is facing an EU fine of 200 million euros for breaking European consumer protection law. Now the company is making concessions to Brussels.
The online giant Temu vows to improve consumer protection after an EU fine of 200 million euros and is submitting proposals for changes to the European Commission. In the future, the shopping portal will check whether its recommendation algorithms help illegal products to spread, as the Brussels authority announced. The commission initially accepted the proposals. Temu now has four months to implement it.
The EU Commission imposed a fine of 200 million euros on Temu in May. The authority accused the company of not sufficiently protecting consumers from illegal products and underestimating the risks on its platform. This is a serious violation of the EU Digital Services Act (DSA for short).
Many items failed during test purchases in 2025. Chargers failed basic safety tests. A "high percentage" of baby toys tested exceeded chemical limits or posed a choking hazard due to removable parts, according to Brussels internet watchdogs.
Daily fines possible
According to the EU Commission, Temu has now agreed to base the risk assessment on its marketplace on current and reliable data in the future and to tailor it precisely to its own service. The company also has to check its own recommendation algorithm in this context.
The company should use reliable key figures to prove whether its protective measures actually reduce the spread of illegal products. In addition, Temu must disclose where automatic and manual controls of dealers' offers on the online marketplace reach their limits. Finally, the group must investigate how retailers specifically exploit the platform's functions to spread illegal offers.
If the European Commission decides that Temu is not doing enough to comply with EU rules, it could also order daily fines for the Chinese company after the million-dollar fine from May. The case against Temu has been going on for almost two years.
What to Watch
AI outlook — possibilities, not facts
Temu must implement the promised changes to the algorithm within four months.
Very likely · Within months
Open Questions
- How effective will the new algorithm checks be in practice?
- Are daily non-compliance penalties actually activated?
