AliExpress fined record €550m by EU for failing to stop sale of illegal and fake goods

Chinese retail platform handed penalty over listings for items such as counterfeit products and unsafe toys

Published 20 July 2026 431 words
BUSINESS B2
AliExpress fined record €550m by EU for failing to stop sale of illegal and fake goods

The European Union has fined the online shopping site AliExpress a record €550m. The company was punished because it did not do enough to prevent illegal and fake products from being sold on its platform. This is the largest fine ever given by the EU under a new law called the Digital Services Act (DSA).

The DSA is a set of rules designed to protect consumers. It aims to stop companies from selling dangerous items, using misleading advertisements, or encouraging addictive behaviour. The EU executive stated that AliExpress failed to follow these rules, allowing harmful clothing, cosmetics, and kitchen items to be sold online.

An EU official explained that large online platforms have a responsibility to identify and fix risks. She emphasised that AliExpress’s size is not an excuse for not complying with the law. The fine, while large, is less than 1% of the total revenue of AliExpress’s parent company, Alibaba. This means AliExpress could have faced a much higher penalty.

This is not the first time online platforms have been fined under the DSA. Recently, the EU fined Temu €200m and X (formerly Twitter) €120m for different violations. Temu is still being investigated for other issues, and X was fined for things like its verification system and advertising transparency.

The European Commission found that AliExpress did not have enough staff to check if products were legal. They reportedly spent very little time, sometimes only seconds, judging if items met EU safety standards. Furthermore, the commission discovered that many illegal products were promoted on AliExpress and that the company’s own risk assessments were not effective.

Despite AliExpress’s claims, illegal and fake products remained available on the site for extended periods. The commission’s investigation found that many items flagged as illegal reappeared online. The platform also made it easy for sellers to bypass rules, for example, by mislabelling fake designer items as unbranded products.

Vocabulary

record — The highest number or amount achieved so far.
penalty — A punishment, usually a sum of money, imposed for breaking a law or rule.
consumers — People who buy and use goods and services.
misleading — Giving the wrong idea or impression.
compliance — The act of obeying or following a law, rule, or request.
violations — Acts that break a rule or law.
promoted — Advertised or made more widely known.
bypassed — Found a way around a rule or obstacle.

Discussion Questions

  1. Why has AliExpress been fined a record amount by the EU?
  2. What is the purpose of the Digital Services Act (DSA) according to the article?
  3. What specific failures by AliExpress led to the fine?

Based on an article from The Guardian.

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