The European Commission has approved an action plan submitted by Chinese e-commerce marketplace Temu to address violations of the Digital Services Act (DSA). The decision follows a €200 million fine imposed in May 2026 after regulators found that the platform had failed to adequately assess the risks of illegal and unsafe products being sold to European consumers.
Under the approved plan, Temu must introduce five corrective measures to improve product monitoring, identify risks, and prevent the spread of illegal listings. The company now has four months to implement the measures, after which an independent assessment will evaluate their effectiveness.
The approval does not cancel the existing fine or mean that Temu has fully resolved its compliance problems.
The European Commission’s investigation found shortcomings in Temu’s approach to identifying and evaluating risks associated with illegal products.
Regulators raised concerns about unsafe items, including electronic equipment and children’s toys, as well as the potential influence of recommendation algorithms on the visibility of non-compliant products.
Temu’s approved action plan focuses on five areas. The marketplace must conduct risk assessments tailored to its own operations, introduce reliable indicators to measure the effectiveness of its safety measures, and examine weaknesses in its content moderation systems.
It must also investigate whether recommendation algorithms increase the visibility of illegal products and assess how sellers could manipulate marketplace features to promote prohibited listings.
These requirements go beyond removing individual unsafe products. They aim to help Temu identify how its platform design and operations may contribute to distributing illegal goods.
The company must complete an interim risk assessment covering the six-month period ending November 30, 2026. An independent audit will then review its implementation, and the company must submit the findings to the Commission.
Temu has rapidly expanded across Europe, becoming one of the region’s most prominent international e-commerce platforms.
However, its growth has attracted increasing attention from European regulators, particularly regarding product safety, consumer protection, and competition with EU-based retailers. The €200 million fine issued in May followed findings that Temu had not adequately assessed the systemic risks associated with illegal products on its marketplace.
Although the Commission has now accepted the company’s corrective plan, it will continue monitoring implementation. Further enforcement measures remain possible if Temu fails to meet its obligations.
The Commission’s decision also highlights the importance of reliable product information in large online marketplaces.
Platforms handling millions of product listings need effective systems to identify products, evaluate potential risks, and detect information that may indicate non-compliance with European regulations.
Accurate product descriptions, technical specifications, manufacturer details, and relevant safety information can support these processes.
For e-commerce businesses, standardized product data makes it easier to keep product information consistent across sales channels. Solutions such as Icecat’s product catalogs help brands and retailers organize and distribute product specifications, descriptions, and other product attributes.
However, structured product information is only one part of marketplace compliance. Platforms must also maintain effective seller verification, product safety controls, content moderation, and risk assessment procedures.
Temu’s case demonstrates that regulators are increasingly examining not only the products available on marketplaces but also the systems used to recommend, monitor, and manage them.
The European Commission’s approval gives Temu an opportunity to address the shortcomings identified during its investigation, but the company’s progress will be measured through implementation and independent evaluation.
For Temu, the coming months will be important in demonstrating that its corrective measures can effectively identify and reduce the risks associated with illegal products.
For the wider e-commerce industry, the case illustrates how the Digital Services Act is changing the responsibilities of major online marketplaces.
As European authorities increase scrutiny of product safety and platform operations, marketplaces will need to demonstrate that their compliance systems are effective, rather than simply having policies in place.
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