EU hits AliExpress with a record 550 million-euro fine over unsafe and counterfeit goods

The European Commission has fined Chinese online marketplace AliExpress 550 million euros ($629 million) for failing to adequately crack down on the sale of unsafe and counterfeit products on its site. The fine is the biggest ever imposed for breaches of the Digital Services Act, which aims to keep users safe online and stop the spread of harmful content. AliExpress has been accused of not identifying and addressing systemic risks, despite having invested substantial resources in risk assessment and mitigation since the DSA came into force. The commission's executive vice-president Henna Virkkunen stated that scale is not an excuse for risks to be ignored. AliExpress has until October 20 to submit an action plan setting out measures to remedy the breach of its obligations. This fine comes just months after another online retailer, Temu, was fined 200 million euros for similar breaches.

The European Union has fined online retailer AliExpress €550 million (US$630 million) for allowing the sale of illegal products. The EU stated that AliExpress failed to adequately prevent the sale of counterfeit goods and that detected illegal items often remained online for weeks. An investigation launched in March 2024 found that some products sold on the platform did not meet the EU's strict environmental and safety standards. The illegal products included unsafe toys and cosmetics.

The European Commission has fined AliExpress a record €550 million for failing to prevent the sale of illegal and counterfeit goods on its platform. This penalty, the largest under the Digital Services Act (DSA), stems from AliExpress's insufficient measures to identify and address risks associated with harmful clothing, cosmetics, and unsafe toys. Investigations revealed that the platform lacked adequate staff to assess product legality and that its recommendation systems promoted illegal items. Despite claims of compliance, millions of flagged illegal products remained online for extended periods. AliExpress has condemned the fine as disproportionate and is considering its options.