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EU Approves Temu’s Compliance Roadmap to Curb Illegal Goods

After facing a 200 million euro penalty for failing to police its digital storefront, Temu has secured European Commission approval for a remedial action plan. The online retailer must now overhaul its content moderation and recommendation algorithms to stem the proliferation of illicit products across the bloc.

EU Approves Temu’s Compliance Roadmap to Curb Illegal Goods

The European Commission’s green light follows a contentious investigation that determined Temu’s initial risk assessments under the Digital Services Act were insufficient. As a designated very large online platform, the PDD Holdings subsidiary is legally obligated to demonstrate that its systems effectively identify and block dangerous or illegal listings. Temu previously argued that those early assessments were snapshots in time that failed to capture the rapid evolution of its internal safety architecture.

Under the new terms, Temu has four months to execute a comprehensive interim risk assessment spanning a six-month window. The company must deploy reliable metrics to measure the efficacy of its moderation tools and specifically investigate how bad actors exploit platform features to push prohibited sales. A company spokesperson stated the plan reflects significant improvements to their methodology since the 2024 implementation of the rules, signaling a shift toward greater regulatory alignment.

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