The European Union is hitting Chinese e-commerce retailer Temu with a €200 million ($232 million) fine, for failing to curb the sale of illegal products on the platform.

According to a May 27 release from the EU Commission, an investigation dating back to October 2024 found that European consumers are "very likely" to encounter illegal items in Temu's store. That included a high percentage of device chargers that failed basic safety tests, baby toys that posed safety risks of "medium to high severity," and toys that contained chemicals that exceeded legal safety limits.

"Temu’s risk assessment underestimates concrete risks, lacks specificity, is not grounded in solid evidence, and is not comprehensive," said EU Commission Executive VP for Tech Sovereignty Henna Virkkunen. "It leaves regulators, users and the public in the dark about the true scale of potential harm posed by illegal products sold on Temu. Now it is time for Temu to comply with the law."

In a statement to BBC News, the company said that it disagrees with the EU's decision, and that it is considering its available options moving forward. Temu has until August 28 to submit an action plan to the EU Commission that addresses the issues flagged in the investigation. The commission will then have a month to assess Temu's plan and determine whether it's sufficient.

The EU Commission opened a similar investigation into Temu competitor Shein in February 2026, centered around the protections the fast fashion retailer has in place to limit the sale of child-like sex dolls, the risks linked to the addictive design of the platform, and Shein's systems that recommend products to users.

According to the Associated Press, Shein is also looking to acquire eco-friendly clothing brand Everlane, as a deal that would pair one of the world’s biggest fast-fashion retailers with a brand that built its identity around sustainability and ethical sourcing. However, Everlane has faced scrutiny of its own in recent years, over allegations of union-busting during the COVID-19 pandemic, and criticism that the company failed to live up to its self-described commitment to transparency and ethical business practices.