Temu’s action plan to address illegal products and improve consumer protection has been accepted by the European Commission, marking another step in the EU’s efforts to hold major online marketplaces accountable under its Digital Services Act (DSA).
The Chinese-owned e-commerce platform has committed to assessing the risks associated with illegal goods, strengthening measures to prevent their sale and monitoring whether its safeguards are working effectively. The company has also agreed to examine how its recommendation systems could contribute to the spread of illegal products, according to the Commission’s announcement on Monday.
The approval follows a €200 million fine imposed on Temu in May 2026 over violations linked to the sale of illegal and unsafe products on its platform. The EU cited concerns involving items such as dangerous baby toys and faulty chargers, which could expose European consumers to safety risks.
The penalty followed a formal investigation launched in October 2024 into whether Temu was meeting its obligations as a Very Large Online Platform under the DSA. The legislation places additional responsibilities on major digital platforms to identify and address risks associated with their services.
During the investigation, the Commission found that Temu had not adequately assessed the risks of illegal products being sold through its marketplace or taken sufficient steps to address them. The case highlighted the challenges regulators face in monitoring online platforms that connect millions of consumers with sellers offering a wide range of goods.
Temu welcomed the Commission’s acceptance of its action plan, describing the regulatory engagement as constructive. The company said the plan demonstrated its commitment to investing in compliance systems designed to provide a safer and more trustworthy shopping environment for users across the European Union.
The approval does not mean that Temu’s obligations have ended. The company is expected to follow through on its commitments, including assessing risks and strengthening the measures used to detect and prevent illegal products. The effectiveness of those measures will remain important as European regulators continue enforcing the DSA.
Temu has become a major player in Europe’s online retail market, with 130 million users across the EU’s 27 member states, according to the figures cited in the original report. Its scale makes compliance particularly significant because weaknesses in product checks or seller oversight can affect consumers across multiple countries.
The regulatory pressure also comes as the EU changes the rules governing low-value parcels entering the bloc. Temu and other e-commerce platforms have faced a new €3 fee on low-value packages since July 2026, while shipments valued below €150 had previously benefited from a customs duty exemption.
The changes have added to the challenges facing retailers that rely on large volumes of inexpensive goods shipped directly to European customers. Imports, particularly from China, reportedly fell by between 30% and 40% following the introduction of the new measures.
For Temu, the Commission’s acceptance of its action plan comes as the company navigates both stricter digital platform rules and changes to the economics of cross-border e-commerce. Its next challenge will be to demonstrate that its commitments translate into effective safeguards against illegal and unsafe products sold to European consumers.
