The European Commission has officially accepted a corrective compliance roadmap submitted by cross-border e-commerce platform Temu.
The move follows a landmark €200 million fine levied against the company over systemic failures to curb the widespread sale of counterfeit, unsafe, and illegal products under the European Union’s strict Digital Services Act (DSA).
The plan focuses on five measures to remedy the breach, and Temu now has four months to conduct an interim risk assessment, the EU regulator, said in a statement.
The five-point action plan:
Under the newly accepted framework, Temu is legally bound to overhaul its backend operations across five critical pillars such as:
Targeted risk analysis:
Factoring the specific vulnerabilities of its high-volume discount marketplace model into security evaluations.
Mitigation metrics:
Establishing verifiable benchmarks to track how effectively illicit listings are flagged and eliminated.
Content moderation audits:
Upgrading automated and human review systems that screen for banned merchandise.
Algorithmic accountability:
Scrutinizing recommendation engines to ensure platform algorithms do not actively promote unsafe or illegal items.
Seller exploitation defenses:
Closing loopholes that bad-faith merchants use to disguise or elevate problematic listings.
The Commission had imposed a €200 million ($224.08 million) fine on Temu in May for not doing enough to stop the sale of illegal products.
A spokesperson for Temu, which is owned by PDD Holdings, said it welcomed the Commission’s approval of its plan under which the company will have to assess possible shortcomings of its content moderation system, among other steps.
Temu, along with Shein and other ecommerce platforms, has been hit by the EU imposing €3 fees on low-value ecommerce packages since the start of July.
Parcels worth less than €150 previously entered the bloc duty-free.
Regulators previously found that Temu’s platform safeguards and risk assessment procedures were fundamentally inadequate, allowing dangerous goods such as non-compliant electrical chargers and children’s toys exceeding chemical safety limits—to easily reach European consumers.
