Temu faces a four-month deadline to deliver an interim risk assessment and prove it has implemented safeguards against unsafe products reaching European consumers.
The European Commission announced today that it has endorsed Temu's remedial strategy to align with the Digital Services Act (DSA), roughly half a year after imposing a €200 million penalty on the e-commerce platform for failing to adequately evaluate risks posed by illegal merchandise on its marketplace.
Temu's submission outlines five key initiatives: conducting a risk assessment tailored to its specific operations, leveraging data analytics to verify the effectiveness of protective measures, and intensifying oversight of its content moderation practices.
The platform will also investigate whether its algorithmic recommendation engine facilitates the distribution of prohibited items to buyers, and identify ways sellers might manipulate platform mechanics to promote unlawful product listings.
Temu must deliver its interim assessment within four months, covering activities through November 30, 2026, documenting that the outlined measures have been deployed.
The May 28 fine stemmed from the Commission's finding that Temu's 2024 risk assessment drew on broad generalizations about e-commerce rather than platform-specific data. This methodology caused the company to underestimate the probability that European shoppers would encounter prohibited goods.
Independent laboratory testing uncovered significant safety failures: numerous charging devices did not meet fundamental safety standards, and various children's toys presented moderate to severe hazards, including exposure to prohibited chemical substances and choking risks from detachable components.
The Commission also faulted Temu for insufficient evaluation of how its recommendation algorithms and celebrity endorsement initiatives could amplify the reach of illegal merchandise.
The regulatory process began in October 2024, with preliminary conclusions shared with Temu in July 2025. The company submitted its compliance plan by the August 28 deadline, which was then reviewed by a panel of national digital services authorities before the Commission's approval.
Risk assessments are not box-ticking exercises; they are the backbone of the DSA
Henna Virkkunen, the Commission's executive vice-president for tech sovereignty, in May
Temu contested the original penalty, characterizing it as excessive. The company contended that the enforcement action centered on its initial 2024 risk assessment and failed to account for the technological infrastructure it currently operates.
Under DSA provisions, the Commission may impose fines reaching 6% of a company's total worldwide revenue for breaches. The law additionally permits the imposition of ongoing financial penalties should organizations neglect to follow Commission directives.
In July, Brussels issued a €550 million fine to AliExpress, marking the largest sanction handed down under the legislation to date.
Source: The Next Web
