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Temu fined $232 MN for sale of illegal products in EU

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.

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