EU approves Temu's action plan on illegal products after 200 million euro fine

Commission accepts Temu's action plan

On Monday, 26 October 2026, the European Commission approved an action plan from Temu to correct breaches of the Digital Services Act (DSA), the EU law governing online platforms. The breaches concern Temu's obligations to assess risks, in particular the spread of illegal products on its marketplace. The Chinese company has four months to put the measures in place, and an external and independent review will check the plan. Brussels will oversee the implementation. Temu, the international version of the Chinese e-commerce giant Pinduoduo, founded in 2015, has grown rapidly since its European launch in 2023 and sells clothing, toys, decor, tools and high-tech items.

What the Commission found

In May 2026 the Commission fined Temu 200 million euros for letting EU consumers buy illegal products, including dangerous baby toys and defective chargers. Test purchases made in 2025 found many items failing: chargers did not pass basic safety tests, and a high share of the baby toys tested either exceeded chemical limits or posed a choking risk from detachable parts. The Commission described the breach as serious and found that Temu had significantly underestimated how many illegal products were on its platform. Temu's earlier submissions addressed the market in general but not its own platform, according to Brussels. The DSA proceeding against Temu has been running for almost two years.

Measures Temu has committed to

Temu agreed to base its risk assessments on current and reliable data tailored to its own service. It must also examine its recommendation algorithm, including whether it helps spread illegal products, and review its moderation systems. Temu will have to show with robust metrics whether its protections actually reduce the spread of illegal goods. It must also disclose where automatic and manual checks of traders' offers reach their limits, and investigate how traders exploit platform functions to push illegal listings. In its own statement, Temu said it welcomed the approval and thanked the Commission for the quality of the exchanges during the process, stressing its aim of offering EU users a safe and trustworthy shopping environment.

Reporting deadlines and possible penalties

Temu must submit an annual risk report to the Commission that assesses how many dangerous products its platform carries and how it deals with them. The company has promised a detailed risk report by the end of November 2026, consisting of a preliminary document covering six months. It has been given four months for the updated annual report. If the Commission decides Temu is still not doing enough to comply with EU rules, it could order daily penalty payments on top of the May fine. Brussels will monitor implementation, and the commitments are meant to close the proceeding.