In the European Union, the European Commission fined the Chinese-owned online retailer Temu €200 million for violating the Digital Services Act (DSA) by failing to adequately address the risks of illegal products on its platform. The investigation, which began in October 2024, revealed serious safety concerns, including dangerous baby toys and faulty electrical chargers that were sold through Temu's marketplace. An independent testing organization conducted a mystery shopping exercise that found a high percentage of products failed basic safety tests, with many baby toys containing chemicals exceeding legal limits. The Commission determined that Temu had not done enough to identify and address these risks, which posed potential harm to consumers in the EU. Specifically, the company's responses to inquiries failed to demonstrate the capacity to comply with DSA's obligations designed to safeguard consumer protection. The fine represents the second significant penalty issued under the DSA, with the first being against Elon Musk's X social media platform in December of the previous year. Temu's spokesperson expressed disagreement with the Commission's decision, claiming the fine was disproportionate, and insisted that the ruling did not reflect the current state of their systems. The Commission has provided Temu with a deadline of August 28 to submit an action plan outlining how it intends to address the identified compliance failures. Subsequently, the European Board for Digital Services will evaluate this plan. The DSA imposes stringent requirements for large online platforms to effectively monitor and manage the risks associated with products sold on their platforms. The need for rigorous risk assessments is emphasized as a critical component of maintaining legal compliance. As the situation develops, questions remain about how Temu will respond to the directives from the European Commission and whether the company will succeed in rectifying the issues raised during the investigation.