The European Commission has accepted a remedial plan submitted by Pinduoduo’s international e-commerce platform, TEMU. This development follows a previous €200 million (approximately $215 million USD) fine imposed on TEMU for violating the Digital Services Act (DSA) due to its failure to adequately assess systemic risks related to the spread of illegal goods on its platform.
TEMU’s DSA Violation and Previous Fine
In May 2026, TEMU was fined €200 million by the European Union for breaching the DSA. The Commission found that TEMU’s initial risk assessment reports were insufficient, overly reliant on generic industry-wide risk information, and underestimated the likelihood of EU consumers encountering illegal products. Tests conducted by the Commission revealed that several chargers sold on the platform failed basic safety tests, and numerous baby toys posed medium to high safety risks, including excessive chemical content and choking hazards from small detachable parts.
The Accepted Remedial Plan
The new remedial plan, accepted by the European Commission, aims to address the identified shortcomings. It includes five key measures:
- Conducting a risk assessment tailored to TEMU’s specific platform.
- Establishing reliable metrics to measure the effectiveness of risk mitigation measures.
- Identifying weaknesses in content moderation mechanisms.
- Analyzing the impact of recommendation algorithms on the dissemination of illegal goods.
- Assessing the risk of sellers or other users intentionally manipulating platform features to increase the exposure of illegal products.
Implementation and Oversight
TEMU is required to implement these measures within four months and submit a progress report on its risk assessment by November 30, 2026, covering the preceding six months. Furthermore, the implemented measures must undergo an independent external audit. TEMU must present the audit report to the Commission within four months of completing the implementation. If the auditors recommend any corrective actions, TEMU will have one month to inform the Commission about its plans to address these recommendations.
Digital Services Council’s Input
The Digital Services Council reviewed TEMU’s initial proposals on September 24, 2026, noting that certain measures lacked sufficient detail to fully resolve the previously identified issues. The Commission has incorporated the Council’s feedback to clarify the remedial requirements and will focus on the execution of these measures during its subsequent supervision.
TEMU’s Response
A spokesperson for TEMU stated that the company welcomes the Commission’s acceptance of the remedial plan, highlighting it as an improvement in the platform’s risk assessment methodology. It is important to note that the acceptance of this plan does not nullify the previous fine, nor does it signify that the risks associated with illegal products on the platform have been entirely eliminated. The Commission will continue to monitor TEMU’s progress and evaluate its compliance based on the implementation of these measures and the results of the independent audit.
Broader Context
This situation is part of a larger effort by the EU to regulate online marketplaces and ensure consumer safety. Previous actions and concerns have included accusations of TEMU not cooperating with investigations, potential fines based on annual revenue, and investigations into misleading sales practices such as fake discounts and deceptive ‘cut-the-price’ games. French authorities have also urged the EU to tackle the proliferation of counterfeit and substandard products on platforms like TEMU and Shein.
