Chinese online retailer Temu has been fined €200 million ($232 million) for not doing enough to stop the sale of illegal products, reports Reuters. Further penalties could follow in the coming months as a result of a nearly two-year investigation under the Digital Services Act that requires large online companies to do more to tackle illegal and harmful content on their platforms.
EU regulators investigated Temu following complaints by pan-European consumers’ organisation BEUC and 17 of its national members. The European Commission, the EU executive, said the company failed to diligently identify, analyze and assess the systemic risks of illegal products sold on its platform and the resulting harm to consumers in the European Union.
It criticised Temu for not properly assessing how its recommender systems and product promotion programmes by affiliated influencers could amplify the risks of sales of illegal products.