European Union (EU), through its Commission, has imposed a €200m fine on Chinese-owned online retail outlet, Temu over illegal products, including; dangerous baby toys and faulty chargers offered for sale on its platform.

According to the EU’s European Commission, Temu had failed to diligently identify, analyse and assess the systemic risks’ of the products and the harm they could cause to consumers.

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The online retail outlet has reportedly been under the commission’s investigation since October 2024 over whether it has been meeting its obligations as a designated ‘Very Large Online Platform’ under EU law.

Reacting to the fine, Temu said it disagreed with the EU decision, adding that it deemed the fine disproportionate, and is now considering available options.

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 also found that a high proportion of baby toys posed safety risks, containing chemicals above legal limits or featuring small detachable parts that presented suffocation hazards, Euronews reported.

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.

A Temu spokesperson said in a statement that the retailer respected the need for clear, consistent rules, but that the decision related to 2024 and did not reflect the current state of its systems.