EU accepts Temu compliance plan following €200 million fine
The marketplace must provide an interim risk assessment within four months showing that its planned safeguards have been implemented.
The European Commission has approved Temu’s proposed steps to address illegal goods under the Digital Services Act (DSA). The decision comes five months after the online marketplace received a €200 million penalty for shortcomings in its assessment of product risks.
The plan covers five work areas. These include examining risks specific to Temu, using data more effectively to evaluate safeguards and reviewing content moderation more closely. Temu will investigate whether its recommendations direct shoppers toward illegal goods and whether sellers can exploit platform features to promote them.
An interim assessment is due within four months and must cover the six months ending November 30, 2026. It must show that Temu has implemented the proposed measures. National digital services regulators reviewed the plan before the Commission approved it.
The May 28 fine stemmed from Temu’s 2024 assessment, which the Commission said used broad online-shopping information instead of evidence from Temu’s own operations. The regulator said this caused Temu to underestimate shoppers’ exposure to illegal goods. Independent laboratory purchases found numerous chargers that failed basic safety tests and several baby toys with chemical or choking hazards.
Temu challenged the penalty as disproportionate, arguing that the assessment did not represent its current systems. The DSA permits fines reaching 6% of a large platform’s worldwide annual turnover, as well as periodic penalties for failing to follow Commission decisions.
