AliExpress fined record €550m by EU for failing to stop sale of illegal and fake goods
Summary
The European Union fined AliExpress €550 million for failing to stop the sale of illegal and fake products on its website. The fine, the largest under the EU’s Digital Services Act, follows a two-year investigation that found AliExpress did not properly check products or protect consumers from harmful goods.Key Facts
- AliExpress was fined €550 million (£470 million) by the EU.
- The fine is the biggest issued under the Digital Services Act (DSA), a law protecting consumers from illegal online goods.
- The investigation lasted over two years and found AliExpress lacked enough staff to review product legality.
- Many illegal products, including harmful clothing, cosmetics, and kitchen gadgets, were sold and stayed online for weeks.
- AliExpress’s system promoted some illegal goods, and its risk checks were ineffective.
- The fine is less than 1% of AliExpress’s global revenue of €122 billion, below the possible 6% maximum penalty.
- Other companies, like Temu and the social media platform X, have also been fined under the DSA for similar issues.
- AliExpress disagreed with the fine and said it had made improvements to comply with the law.
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