AliExpress Fined by EU for Selling Unsafe Products
The European Commission imposed a fine of 550 million euros ($629 million) on AliExpress, a Chinese online marketplace, for insufficient measures against the sale of unsafe and counterfeit products. This penalty is the largest issued under the European Union’s Digital Services Act (DSA) to date.
Background and Previous Fines
Earlier this year, another online retailer, Temu, faced a fine of 200 million euros for similar violations. Last year, a $120 million fine targeted Elon Musk’s social media platform, X. These fines reflect the EU’s commitment to enforcing the regulations of the DSA.
“The spread of counterfeit clothing, unsafe toys, dangerous cosmetics, and other illegal products is not an unavoidable cost of online shopping but a failure to comply with obligations under the Digital Services Act,” stated Henna Virkkunen, the commission’s executive vice-president for tech sovereignty, security, and democracy.
Virkkunen emphasized the importance of systematic risk identification and management to ensure consumer safety online.
AliExpress’s Response
AliExpress expressed its disagreement with the fine in an email to The Associated Press. The company claimed that they are committed to complying with the DSA and have invested in improving product safety and consumer protection. Despite disagreeing with the scale of the fine, AliExpress reportedly continues to review the decision and explore their options.
The penalty applies to the company’s actions up to at least June 2025. This follows a preliminary ruling that identified AliExpress’s insufficient measures against illegal product sales under the DSA.
Actions and Deadlines
AliExpress must submit an action plan by October 20, outlining how it will address the breaches identified by the commission.
The Digital Services Act aims to ensure user safety online, curb harmful content, and protect European users’ fundamental rights like privacy and free speech.
Recent Developments
This announcement also comes shortly after Alibaba, the parent company of AliExpress, agreed to pay $600 million to settle a U.S. government dispute. This involved allegations related to illegal pharmaceuticals and other regulated products imported into the U.S.