Chinese-owned e-commerce sensation Temu is under intense fire from the European Union, which on Monday, August 4, 2025, accused the fast-rising platform of violating the Digital Services Act (DSA) and putting millions of consumers at risk.
In its preliminary investigation, the European Commission flagged Temu for failing to conduct meaningful risk assessments and neglecting to implement adequate safety controls, especially in relation to non-compliant baby toys and electronic goods being sold across EU countries.
\”Evidence shows there is a high risk for consumers in the EU to encounter illegal products on the platform,\” the Commission warned, citing findings from a mystery shopping exercise that uncovered a troubling flood of potentially dangerous items.
Temu, owned by China’s PDD Holdings, only entered the European market in 2023 but has rapidly become one of the most downloaded shopping apps, drawing in an estimated 93.7 million monthly users across the EU’s 27 countries. However, regulators say the platform\’s October 2024 risk report was “inadequate,” relying heavily on generic industry data rather than internal investigations or transparent product tracking.
This probe marks one of the EU’s most high-profile enforcements of the Digital Services Act, a sweeping new regulation that holds digital giants to account for illegal content, consumer deception, and algorithmic abuse. Should Temu be found guilty, it could face fines of up to 6% of its global annual revenue and be ordered to make urgent reforms.
But the controversy doesn\’t end with product safety. The Commission also revealed it is investigating Temu’s use of addictive interface designs, as well as opaque algorithms that determine product recommendations, both potential breaches of the DSA’s transparency and user protection mandates.
Temu has been given an opportunity to respond to the accusations, but no timeline has been set for the final ruling. As regulatory pressure mounts, Temu’s explosive European expansion may soon face significant roadblocks, with billions of dollars and consumer trust hanging in the balance.
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