The European Commission has approved an action plan submitted by Temu to combat the spread of illegal products. The Chinese platform has committed to implementing five corrective measures. The fine previously imposed on Temu remains in place.

In May, Temu was fined 200 million euros by the European Commission for violating the Digital Services Act (DSA). The platform, owned by China’s PDD Holdings, had allegedly failed to adequately investigate and assess the risks associated with illegal products on its marketplace. According to the European Commission, Temu underestimated the likelihood of European consumers encountering unsafe products and failed to sufficiently consider the role of its own recommendation algorithms.

To avoid further fines, Temu submitted an action plan in August, which has now been approved by the European Commission. The platform has committed to implementing five corrective measures. These are intended to help Temu better identify and address the risks associated with illegal products on its platform.

Temu must conduct a platform-specific risk assessment, measure the effectiveness of its measures against illegal products, and investigate shortcomings in its product controls and content moderation systems. In addition, the company must examine how its recommendation algorithms could amplify the spread of illegal products and investigate how sellers might manipulate the platform to offer such items.

Temu has four months to implement the measures, after which an independent audit will assess their implementation. The company must submit the audit report to the European Commission within another four months. Temu welcomed the Commission’s decision, stating that its risk assessment methodology has improved significantly since it first became subject to the DSA’s stricter obligations in 2024.

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