EU fines Temu €200M for allowing sale of illegal products

(bbc.co.uk)

145 points | by jjp 3 hours ago ago

76 comments

  • dsign an hour ago

    Say what you may of Temu, and I do think more vetting of certain goods is a good idea, but they fill a very real need. In the part of Europe where I live, the choice is only between intermediaries for the same products coming from China. The local intermediaries sell a very limited picking at staggering margins. And when it comes to certain things, like electronic components, the choice is between importing (old) American stock with a German company as the intermediary, and that's $$$$ and many weeks of shipping, or using Temu or Aliexpress.

    There's something unpleasantly snobbish with the way business is done here, a spirit of "if you have to ask the price, our business is not for you". For example, in Instagram, "Local offerings" pop up all the time in the feed. The ones which are truly local end up in a "call us to know more" button, no pricing info disclosed. The ones that show actual prices tend to be shell companies with no employees, no doubt a thin wrapper around an importer from Asia.

    • beezlewax 2 minutes ago

      What part of Europe is that? Is it is in the EU?

    • victorbjorklund 8 minutes ago

      Yea, worst is the retail people who clearly hated Temu/Aliexpress etc because they stand no chance at competing with them when they sell the same things but at 10 times the cost (I don’t blame them. Sucks for them) but instead of just saying the truth that they hate the competition they just make up these fake reasons ”oh it’s low quality stuff that will break” when it’s clearly the same stuff from the same factories etc.

    • whimsicalism an hour ago

      yes, i'm very in favor of the shift towards direct-to-consumer among chinese retailers, but that might be because i'm not actually all that sympathetic to small business

    • ktallett an hour ago

      There is some validity to a marketplace selling items from a larger range of retailers, however the quality is so poor for many items that it simply is no good for society in any way.

      • everforward 11 minutes ago

        > the quality is so poor for many items that it simply is no good for society in any way.

        There are some that are genuinely dangerous and bad for society, but there are tons of goods that are "the same thing but half the price because it lasts a quarter the time" that have genuine utility.

        Harbor Freight has basically made a drop-shipping business out of it. I often have tools that I need but will probably use 4 times in my life, and the Harbor Freight stuff is crap but will probably work 4 times.

        Copy that over a bunch of verticals and it starts to make sense. Clothing for a costume I'll wear maybe twice, niche cooking gadgets for very specific things, tools to do a one-time repair on a car, a flash drive to turn over photos to family members, yada yada.

        • doubled112 4 minutes ago

          > some that are genuinely dangerous ... tools that I need but will probably use 4 times in my life, and the Harbor Freight stuff is crap but will probably work 4 times

          Forehead hit hood, but I caught myself so it was a gentle reminder instead of a concussion. I should have splurged that time I broke a socket tightening an axle bolt. 150 ft-lbs + 180 degrees is a fair bit of torque.

    • mytailorisrich an hour ago

      There is a part of conservatism and resistance to change. Online commerce has been seen as "suspicious" by some from the beginning to the point that in, for instance, France free delivery on books is banned... of course this just means that amazon.fr charges 1 cent, instead but it is symptomatic of a state of mind.

  • nickff 10 minutes ago

    The EU's approach to imports from PRoC is the regulatory equivalent of trying to 'test your way to quality' (which Deming showed to be nearly impossible). Attempts to use regulatory fines and prosecutions to ensure compliance from PRoC products is a whack-a-mole exercise which will fail.

  • happyPersonR an hour ago

    Does Amazon or eBay get the same fine? Haha it’s the same people on all of these sites …. Just some dropshipping ?

    • input_sh 28 minutes ago

      Amazon is also under investigation under DSA, eBay is not big enough (in the EU) to matter under this law.

  • esnard 3 hours ago
  • pickleballcourt 20 minutes ago

    I’m curious if its actually difficult or trivial for Temu to enforce

  • kvgr 2 hours ago

    I am very pro free market, but Temu with data harvesting and selling illegal projects should be banned together with tiktok...

    • victorbjorklund 7 minutes ago

      As if Amazon don’t harvest data or have illegal products on its marketplace.

    • thesmtsolver2 an hour ago

      Doesn’t TEMU have CCP ties? Free market is for businesses and individuals and foreign govt entities should not unfairly benefit from a free market.

      • nickff an hour ago

        Every major PRoC company is required to have CCP ties; in addition to 'paying for facilitation' by local officials, a certain percentage of their employees must be CCP members.

      • cm2012 an hour ago

        All big companies in China are partially run by the CCP. Just how it works there.

      • kvgr an hour ago

        Everybody in china that gets big has CCP ties. No way around it. Their car manufacturers are all propped up by government.

      • thenthenthen an hour ago

        Ties as in pay tax to ccp. In China Temu is called pinduoduo (拼多多)and you can buy some wild stuff there, the regulation on mainland seems also pretty lax i mean.

        • frogcoder 22 minutes ago

          Sorry, ties, as CCP party committees inside private firms. And in case of Temu, it also has a data-sharing agreement with People's Daily [1], a CCP controlled media group.

          Just image having a mandatory political party inside every American corporation which the board has no control over.

          1. https://www.washingtonpost.com/national-security/2024/05/01/...

    • ale 2 hours ago

      I’d start with the immense packaging waste and shameless overconsumption tricks that are banned in basically any other industry.

    • holistio 2 hours ago

      If you're "pro free market, but", you're not pro free market. That's fine, but you might want to reevaluate whether you're actually for it.

      • lokar 2 hours ago

        Free markets can have strong rules. No other than Adam Smith said they are needed.

        • hilariously 11 minutes ago

          I would even go further and say that the term really has to be almost "equal" - equal access, equal rules, equal legislation or the market isn't really free.

      • s_dev 2 hours ago

        The US and China have standards as well and bodies to regulate them. Regulation vs Free Market debate isn't a binary issue and is a spectrum.

  • acd an hour ago

    Big corp penny slap on the fingers. I dont this amount will change behaviour or incentive to make larger profit.

  • schnitzelstoat 3 hours ago

    It seems like quite a light punishment for selling such dangerous products that could literally kill people. The dodgy e-bike batteries have already been linked to several fires.

    bigclivedotcom takes apart some of the Temu stuff on YouTube and some of the electronics is atrocious.

    • victorbjorklund 6 minutes ago

      Check will prowse. Western brands aren’t that much better.

    • 1-more an hour ago

      They sell adapters to turn oil cans into silencers. Each one should be a violation of the National Firearms Act and subject to up to a half million dollar fine https://www.atf.gov/media/25071/download Nota bened; these are not per-se illegal, but you need to sell them through a firearms dealer and pay for an ATF tax stamp and only in states that have not banned them/all NFA items.

      • thenthenthen an hour ago

        This. Same for the Chinese mainland app, some wild stuff like that being sold (firearms are highly regulated, but 1:1 copies seem to be ok, maybe because of the high level of regulation?)

  • maxglute 37 minutes ago

    How many dead babies or battery fires post Temu, seems like good opportunity to conduct a before/after study on cost:ratio of EU regulations.

  • manoDev 2 hours ago

    Isn't there some kind of law to disallow imports without a CE / RoHS / etc label? Why allow it to enter the EU, and then fine the seller afterwards?

    • victorbjorklund 3 minutes ago

      How would it be enforced? It is around 16 000 000 packages per day.

    • MobiusHorizons 2 hours ago

      Are you suggesting opening every package to check for a CE? I think fining after the fact is how those laws are enforced.

      • manoDev an hour ago

        I see, the issue is those parcels are mailed directly, not from a logistics operation already inside EU borders.

        In my country the government is pushing those companies to have local warehouses. So if items are bulk imported by the marketplace, in theory it should be easier to inspect.

      • GJim 2 hours ago

        > Are you suggesting opening every package to check for a CE?

        In the old days, when an importer purchased Chinese goods in bulk and resold them, import checks were commonplace.... AND the importer was legally responsible for paying import duties and selling goods to the public that were legal and met safety standards.

        Now that any individual can order direct from China (with cheap subsidised postage!), the floodgates of untaxed and dangerous shite are open.

        One solution is to address the subsidised postage that makes this state of affairs possible.

        • lokar 2 hours ago

          Require the recipient affirm the package meets all legal requirements, and personally assume liability for any violation.

          • victorbjorklund 2 minutes ago

            So hold the consumer liable for laws meant to protect the consumer?

          • mc32 2 hours ago

            That’s unworkable: asking a recipient unfamiliar with producers to know whether producer is reputable or not in advance and if the producer is unscrupulous you expect every affected buyer to follow up or be in violation of importation laws?

            • lokar an hour ago

              If you are not sure, buy from within the EU from an importer who deals with this.

              The old system of spot inspections worked because most import volume was from known, repeat importers.

              • mc32 an hour ago

                I think thats asking much from people some of whom easily get scammed by phone banks in Eastern Europe, India etc. many people will not put in that effort.

    • s_dev 2 hours ago

      The fine is the application of the law. Would be like getting arrested and demanding to know why the authorities aren't getting involved.

      • MichaelZuo 2 hours ago

        I think the parent is questioning how the fine relates to removing the goods from circulation?

        Or is the intention of the law to allow for an unlimited number of supposedly illegal goods to circulate freely within the EU, just fined appropriately?

    • TazeTSchnitzel 2 hours ago

      With a few exceptions, those labels do not mean that the product has actually been tested or actually complies with the standard. They are a self-certification: CE means “I promise this complies with European norms”, but the entity deciding to print that on a product may not be honest. Small fly-by-night operations on the other side of the planet have little incentive to be honest.

      Generally speaking, international direct-to-consumer e-commerce is a problem for trying to enforce these kinds of rules. The whole model of checks at the border works well for massive bulk shipments, which not only are few enough in number that customs have a chance of doing a proper job on them, but there's also a commercial importer taking a large financial risk on the shipment and therefore 1) having an incentive to ensure they import something safe to begin with, 2) they can be practically fined/sued by authorities if they screw up. But when you have myriad tiny operations selling direct to consumers, the consumer is the importer, and there's no local representative for the manufacturer that you can actually sue. It's effectively a quite lawless area. Being able to do direct imports is an important freedom, and this kind of laxity is inevitable, but it's understandable the EU wants to do something about the flood of poor-quality goods that are terrible for fair competition, the environment, and health and safety.

    • dwroberts 2 hours ago

      They add fake labels, this has been happening for a long time

    • saaaaaam 42 minutes ago

      Who says the products don’t have fake CE labels stuck on? A CE label does not - as far as I can tell - have any security features.

    • lefra 2 hours ago

      For electronics without wireless functionality, it is allowed to self-certify. Anyone could also print whatever label they want on their products illegally (i.e. without doing the required paperwork to self-certify).

      The policemen controlling imports don't have the competency to check for faults, so we get this situation where specialists regularly sample the products, and heavy fines are issued to the importer.

      • galangalalgol an hour ago

        And for electronics with wireless, they still just ignore everything. No FCC ID, don't even have any silkscreening on the pcb or markings on the ICs. Nothing gets enforced.

  • ChrisArchitect an hour ago
  • jordiburgos 2 hours ago

    Why there is a difference between selling and allowing to sell? If the product is sold in your site, you must be responsible of it.

    • madeofpalk 2 hours ago

      Isn't this being held responsible for it?

    • SoftTalker an hour ago

      Yes, this "section 230" treatment of online platforms is at the core of why social media and the internet in general is full of garbage.

      If you sell something on your site, or allow users to post something on your site, you should have some liability for the consequences.

    • another-dave 2 hours ago

      they are responsible for it, but it's useful in reporting to differentiate between "fulfilled by" and "bought through"

    • hydrogen7800 2 hours ago

      > If the product is sold in your site, you must be responsible of it.

      But this is an internet store.

  • theragra an hour ago

    Temu also should be fined for predatory marketing. Not sure if laws exist, but dark patterns are everywhere.

    I try to a avoid Temu, but they have some good traits, too, like quick and convinient shipping.

  • j0ba 22 minutes ago

    EU is a fine organization

    • f6v 17 minutes ago

      Feels like the EU is always going to find something to fine you over. Think of it as a tax. The purpose is compensating for the lack of notable domestic tech giants.

  • alephnerd 2 hours ago

    This has been going on for a year now.

    The EU began enforcing a small parcel tax directly against Temu last May [0] and France has been strongly lobbying against Shein and Temu [1]. The EU has also made Chinese overproduction a critical topic of discussion for EU-China relations [2][3], and barring Temu and Shein is backed by both unions and industrial groups within Europe [4].

    All of this is linking to the EU's strategy of playing hardball against Chinese support of Russia's invasion of Ukraine [5][6], as well as pushing back against the Chinese perception that the EU is a has-been [7] as well as conducting an active info-war against a European state [8].

    [0] - https://www.ft.com/content/102e18d7-d06b-4405-a347-97bb3c373...

    [1] - https://www.ft.com/content/b1fdbad1-2793-4975-a10b-74bb928d3...

    [2] - https://www.reuters.com/sustainability/society-equity/eu-law...

    [3] - https://www.europarl.europa.eu/news/en/press-room/20260326IP...

    [4] - https://www.lemonde.fr/economie/article/2025/09/15/les-indus...

    [5] - https://www.bruegel.org/podcast/how-war-ukraine-reshaping-eu...

    [6] - https://www.osw.waw.pl/en/publikacje/osw-commentary/2025-01-...

    [7] - https://fddi.fudan.edu.cn/_t2515/57/f8/c21257a743416/page.ht...

    [8] - https://www.defense.gouv.fr/desinformation/nos-analyses-froi...

    • f6v 15 minutes ago

      > Chinese overproduction a critical topic of discussion for EU-China relations

      Ah of course, I do want the state regulating what I can and cannot buy when it comes to junk. Only approved goods should be allowed.

      • alephnerd 4 minutes ago

        European QoL is predicated on protecting European industry. Why should European workers lose their jobs because you want to buy something cheaper?

        If you don't build nor buy European, you become a vassal of either the US or China.

  • econ an hour ago

    This is something like an individual being fined $200?

    Seems fine

  • exabrial an hour ago

    I mean that was the whole point of Temu... buy shit dirt cheap because over-regulation harms the consumer.

  • Jerry2 43 minutes ago

    The EU is only good at imposing massive fines and they like to regulate technologies they have not created and don't even host them.

    TEMO will more than likely just pass the cost of this onto EU consumers.

    • OKRainbowKid 29 minutes ago

      As an EU consumer, I appreciate laws and regulations that ban selling cheap junk that might burn my house down or poison my baby.

      I take it you don't?

      • w4zz 19 minutes ago

        In my limited experience not all countries do think like this.

  • 0cf8612b2e1e 43 minutes ago

      … which found that a high percentage of chargers purchased through Temu failed basic electrical safety tests. It also found that a high proportion of baby toys posed safety risks, containing chemicals above legal limits or featuring small detachable parts that presented suffocation hazards…
    
    Boring. I can probably find the exact same on Amazon. From the headline, I was hoping the list of illegal products was going to be something like enriched plutonium, RPGs, Lawn Darts, etc