The European Commission has flagged a Temu DSA breach after finding that the Chinese e-commerce giant may be exposing European users to illegal products. Preliminary findings show Temu failed to assess risks and stop the spread of dangerous or non-compliant items on its marketplace.
The probe began on October 31, 2024, when the Commission opened formal proceedings against Temu. Officials suspected the platform wasn’t doing enough to block counterfeit, unsafe, or environmentally harmful goods. These products pose threats to consumer safety, market fairness, and EU compliance.
“We want to ensure that Temu is complying with the Digital Services Act,” said Executive Vice President Margrethe Vestager. “Our enforcement guarantees a level playing field and protects European consumers.”
Temu responded by stating it “takes its obligations under the DSA seriously” and is actively working to improve its compliance systems.
EU finds high risk for illegal product exposure
On July 29, 2025, the Commission released its preliminary findings. According to the report, EU consumers face a high risk of seeing illegal products on Temu. During a mystery shopping exercise, researchers easily found non-compliant goods like baby toys and electronics listed on the site.
Temu’s October 2024 risk assessment also came under fire. The Commission noted that it relied on generic industry data rather than specific information about Temu’s platform. As a result, the risk mitigation steps Temu took were likely ineffective.
“This may therefore have led to inadequate mitigation measures,” the Commission stated.
More DSA-related concerns remain
The investigation will continue, focusing on several other concerns. These include the transparency of Temu’s recommendation algorithms, potential use of addictive design features, and whether the company allows researchers access to platform data.
Regulators also plan to examine how Temu evaluates and enforces product safety moving forward.
Conclusion
The Temu DSA breach has triggered serious regulatory action from the European Commission. While Temu claims to be strengthening its safeguards, the Commission believes the platform still poses risks to EU consumers. As the investigation deepens, Temu may face more pressure to overhaul its marketplace practices and fully comply with the DSA.
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