On 28 July 2025, the European Commission issued a preliminary finding stating that Temu had violated key obligations under the DSA. The accusation is that the platform failed to adequately assess the risks associated with the distribution of illegal products and did not take sufficient measures to protect consumer safety.
Inadequate risk assessment, platform liability at stake
According to the Commission, Temu qualifies as a “very large online platform” (VLOP), as it has over 45 million monthly active users within the EU. This subjects the company to stricter obligations under the DSA, particularly Article 34, which requires a thorough risk assessment.
However, the Commission states that Temu’s October 2024 assessment relied solely on general industry data, failing to consider specific risks within its own marketplace. As a result, the platform may have implemented inadequate measures to counter the spread of illegal products.
Henna Virkkunen, Executive Vice-President of the Commission, said:
“In our preliminary view, Temu is far from meeting the standards set out in the Digital Services Act when it comes to assessing risks to its users. Consumer safety online is non-negotiable in the EU.”
Widespread presence of illegal goods, focus on baby toys and electronics
As part of a mystery shopping exercise, the Commission found that consumers on Temu are highly likely to encounter products that do not comply with EU regulations. Among the categories identified were baby toys and small electronic devices, both of which carry significant safety risks.
The ongoing investigation is also examining whether Temu employs addictive design features, opaque recommendation systems, and inadequate contact details for consumers. If these concerns are confirmed, the Commission could establish a formal infringement and impose a fine of up to 6 per cent of the company’s global annual turnover.
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Widespread violations, criticism from consumer and trade groups
As early as November 2024, the European Consumer Protection Cooperation (CPC) network criticised Temu for misleading discount promotions, fake reviews, and a lack of transparency about sellers. More recent findings from the German consumer organisation vzbv have echoed these concerns.
In a study conducted in June 2025, consumer advocates found that none of the 30 product listings reviewed on Temu and other marketplaces included all legally required disclosures. In particular, the name, address, and contact details of sellers were frequently missing, a clear breach of Articles 30 and 31 of the DSA.
Ramona Pop, board member of the vzbv, commented:
“Even more than a year after the Digital Services Act came into force, online marketplaces are still falling short when it comes to implementing basic rules.”
Austria’s Retail Association also described the Commission’s findings as a “bombshell”. Its Managing Director, Rainer Will, said:
“It is completely unacceptable for products that would be strictly banned here to enter the European market via questionable Far East platforms. The safety of our children must never be compromised for the sake of price.”
Due diligence duties for marketplaces, legal requirements under the DSA
Under the DSA, online marketplaces in the EU must ensure the traceability of business users (Article 30), implement technical safeguards to ensure product safety (Article 31), and carry out detailed risk assessments (Article 34). They are also required to take proactive steps against the dissemination of illegal content and products, and provide accessible points of contact for consumers.
Repeated failure to meet these obligations may result in sanctions, including fines or mandatory structural changes to the platform.
Political backdrop, growing trade tensions with China
The proceedings against Temu come amid escalating trade tensions between the EU and China. At the recent EU–China Summit, Commission President Ursula von der Leyen stressed the need for more balanced economic relations. The current investigation into Temu is part of the Commission’s broader clampdown on major platforms, including Shein, Amazon and AliExpress.
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What’s next, investigation ongoing, no final decision yet
Temu now has the opportunity to respond to the allegations in writing. Meanwhile, the European Board for Digital Services is being consulted. If the Commission upholds its preliminary findings, concrete sanctions could follow, including heavy fines and sweeping new obligations for the platform.
Until then, Temu remains under scrutiny, as does the increasingly embattled digital trade sector operated by third-country platforms.
