The European Commission has accepted Temu’s corrective-action plan following a €200 million fine imposed in May over the marketplace’s handling of illegal and unsafe products. The agreement requires Temu to show that its risk controls, listing moderation and product-recommendation systems can limit the spread of non-compliant goods to European consumers.
The May 28 penalty followed the Commission’s finding that Temu had not adequately assessed the risks posed by illegal or unsafe products on its platform. Commission test purchases raised concerns over selected chargers that failed basic safety checks, as well as children’s toys containing substances above permitted limits or small parts that could create a choking risk.
What Temu must change
- Conduct platform-specific risk assessments rather than relying on general e-commerce data.
- Use performance indicators to demonstrate that its measures are reducing the circulation of illegal listings.
- Review the limits of its existing systems for detecting and removing non-compliant products.
- Assess whether its recommendation algorithm contributes to promoting illegal products.
- Examine how sellers may exploit marketplace features to increase the visibility of problematic listings.
The Commission’s focus extends beyond removing individual listings. Temu will also need to examine whether unsafe products can reappear under different names and gain visibility through recommendation tools or seller tactics. The Commission had previously raised concerns that influencer-promotion programs could compound those risks.
Temu has four months to provide an interim assessment covering the six-month period ending November 30, 2026. Acceptance of the plan does not mean the Commission has determined that the marketplace is now safe, and it does not cancel the €200 million fine. The Commission can pursue periodic financial penalties if the commitments are not implemented.
The action comes amid broader EU scrutiny of major cross-border marketplaces. AliExpress was fined €550 million in July under the Digital Services Act, while Temu, Shein and AliExpress are also set to be affected by a new €2 EU charge ahead of Black Friday. Temu’s interim assessment will be the next indication of whether its new controls are producing measurable results.
