European Commission accepts Temu's corrective plan over illegal product sales

The European Commission has accepted an action plan submitted by Temu to address risk-assessment failures that allowed illegal products to be sold on its platform, without cancelling the €200 million fine imposed on the company in May.

The plan comprises five corrective measures. Temu has committed to conducting a risk assessment tailored to its service using reliable and up-to-date information to identify specific risks linked to the design, operation and use of the platform. The company will also use reliable metrics and indicators to assess whether mitigation measures are effectively curbing illegal content, and will evaluate the limits of its proactive content moderation.

In addition, Temu will analyse whether its recommendation systems and algorithms can influence or amplify the spread of illegal products on its marketplace. It will also examine the impact of intentional manipulation by sellers exploiting Temu's own features to circulate potentially illegal listings.

A Commission analysis had found risks of encountering products such as toys and small household appliances that failed to meet European standards.

Temu became the second platform fined under the Digital Services Act — after Elon Musk's X — when Brussels announced the €200 million penalty in late May for failing to identify and assess with due diligence the systemic risks posed by illegal product sales and the resulting harm to EU consumers. The Commission had given Temu until 28 August to submit a corrective plan.

The Commission said proceedings against Temu are not closed, with ongoing scrutiny covering the effectiveness of its mitigation measures, its use of design features, and its recommender systems.