July 21, 2026 – 3:51 p.m. Save You have reached your maximum number of saved items. Remove items from your saved list to add more. TOTOTO Policing products sold through online marketplace giants such as Chinese companies AliExpress, Temu and Shein has become a game of whack-a-mole for consumer regulators around the world. Discount sites
Policing products sold through online marketplace giants such as Chinese companies AliExpress, Temu and Shein has become a game of whack-a-mole for consumer regulators around the world.
Discount sites are attractive to shoppers who may ignore or overlook the risks of shopping on what can be the equivalent of Wild West retail forums and group themselves into niche categories, from counterfeit brand-name clothing to dangerous toys and unsafe cosmetics.
The European Commission has just imposed the largest fine in its history on Chinese marketplace AliExpress for allowing the sale of dangerous, counterfeit and illegal products on its site, and issued a harsh reprimand for its failure to monitor the products found on its digital shelves.
AliExpress is appealing the nearly $900 million tax, claiming it is disproportionately large and does not reflect the “established framework and significant, proactive improvements” the company says it has made.
That said, the fine represents only 1 percent of the company’s sales. So it appears to be a long way from being a significant deterrent.
This follows the European Commission’s use of the Digital Services Act to fine Temu $325 million earlier this year for “failing to adequately assess the systemic risks posed by illegal and unsafe products” sold to consumers across the European Union.
It also fined Elon Musk’s X nearly $200 million in November for transparency violations related to the deceptive design of its “blue checkmark” account verification system.
Meanwhile, both Temu and Shine felt the spotlight last year after child sexual abuse dolls and disembodied heads sold by third parties were listed on their websites, and which items caught the attention of European and Australian authorities and were subsequently removed.
According to Australian consumer group Choice, the volume of unsafe products arriving in Australia through online marketplaces such as Amazon, eBay, AliExpress, Shein and Temu likely amounts to millions of items a year. He believes that there are no effective guardians to stop them.
In the European Commission’s action against AliExpress, the regulator targeted the e-commerce platform whose lack of enforcement resources allowed malicious merchants to circumvent the rules and whose internal risk assessments failed. The company’s detection systems malfunctioned and even products that had been flagged as illegal remained online for weeks after they should have been removed.
Previous investigations by the EU on a sample of products sold on large retail platforms, including Shein, reportedly found that 65 percent of cosmetics, 63 percent of dietary supplements and 60 percent of personal protective equipment, such as helmets and steel-toed construction boots, were non-compliant.
The focus on these large e-commerce sellers represents a new front of attack by the European Commission, which previously focused its Digital Services Law on large digital social media platforms such as X and Meta; The latter was accused of designing Facebook and Instagram to be addictive and of failing to evaluate their potential for mental harm.
Although regulators will win some battles, winning the war remains a much bigger challenge.
Options research shows that products that may have been banned outright in Australia, such as novelty lighters and cigarettes, sky lanterns and tongue studs, can still be found on Amazon, AliExpress, eBay and Shein. He says many of these products appear to be designed to appeal to young children.
In fact, whack a mole.
The Business Briefing newsletter delivers top stories, exclusive coverage and expert opinions. Sign up to receive it every weekday morning.
From our partners
Check back often for more exciting news!
