The European Union (EU) has slammed a €200m ($232m; £173m) fine on Chinese-owned online retailer Temu over the sale of illegal and unsafe products on its platform, including dangerous baby toys and faulty chargers.

The European Commission said Temu “failed to diligently identify, analyse and assess the systemic risks” linked to the products and the dangers they posed to consumers across the bloc.

Temu has been facing investigation since October 2024 over allegations that it failed to meet obligations required of a designated Very Large Online Platform under EU regulations.

The company, however, rejected the decision and described the penalty as excessive, saying it was reviewing possible next steps.

The probe included a mystery shopping exercise conducted by an independent testing organisation. Findings showed that many chargers bought through Temu failed basic electrical safety checks. The investigation also revealed that several baby toys sold on the platform contained chemicals above approved legal limits or had detachable small parts capable of causing suffocation hazards, according to Euronews.

Beyond the financial penalty, the EU ordered Temu to submit an action plan addressing the identified lapses before 28 August. The Commission is expected to decide within two months whether the measures are sufficient for compliance.

EU tech commissioner Henna Virkkunen said the ruling was meant to send a “very strong message” to the online marketplace.

A Temu spokesperson, in a statement, said the company acknowledged the importance of clear and consistent regulations, while insisting that the findings related to its operations in 2024 and did not represent its current systems.

“We disagree with the European Commission’s decision and consider the fine to be disproportionate,” they said.

“We are reviewing the decision carefully and considering all available options.”

Meanwhile, UK consumer rights group Which? welcomed the EU’s move and called on British authorities to take similar action against online marketplaces selling unsafe products.

“The EU’s decision to fine Temu to the tune of €200m is a strong example of the tough action needed to hold online marketplaces to account for dangerous products on their platforms,” said Sue Davies, head of consumer protection policy at Which?.

“The UK government should follow the EU’s example and make use of its new powers under the Product Regulation and Metrology Act to make online marketplaces legally responsible for dangerous products.”

The sanction marks only the second fine issued under the EU’s Digital Services Act for online content violations. The first was a €120m penalty imposed on Elon Musk’s X social media platform last December. (Nigerian Tribune)