EU Scores Temu For Neglecting to Protect Consumers

The European Union (EU) has criticized Chinese retailer Temu for being negligent in protecting consumers from dangerous products, accusing the company of treating safety and regulatory requirements in a cavalier fashion, Andrew Nusca reported for Fortune Tech.

Temu has about 94 million monthly active users in the EU, where it has operated since 2023. I Photo: Temu South Africa Facebook

“Evidence showed that there is a high risk for consumers in the EU to encounter illegal products on the platform,” wrote the European Commission in a preliminary finding.

So-called non-compliant products include anything that doesn’t satisfy the EU’s safety and regulatory standards. On the safety front, that could mean the use of hazardous chemicals, choking hazards, or risks of electrical shock.

On the regulatory front, it could involve insufficient labeling or missing documentation.

In its preliminary finding, the Commission specifically cited baby toys and small electronics.

The EC has been investigating Temu since October 2024. The retailer is technically headquartered in Boston, and its parent company, PDD Holdings, is officially based in Dublin, but most consider Shanghai its functional home base. PDD refers to Pinduoduo.

Temu has about 94 million monthly active users in the EU, where it has operated since 2023.

The company said it would “continue to cooperate fully with the Commission.” If found to be in violation of the law, Temu could face fines of up to 6% of its total worldwide annual revenue.