The initiative comes at a time when the platform is under scrutiny from European regulatory authorities. As recently as May 2026, the EU Commission issued a fine of 2.1 billion Swedish krona to Temu for deficiencies in the platform’s risk management regarding illegal goods. Temu has until August 28, 2026, to submit an action plan to the Commission, and the new report can be seen as part of an effort to demonstrate improved systems.
Increase in proactive removals
The report, covering the period from June 2025 to May 2026, shows that Temu has shifted its focus towards more automated and proactive monitoring. The company’s database now includes over 15,000 brands, compared to approximately 5,000 during the previous period.
We are working to protect intellectual property rights before they become a problem for the rights holder. The report reflects our priorities: proactively identifying and removing potential infringements, handling reported cases quickly, and collaborating closely with brands to continuously improve our systems, says Temu.
Tougher scrutiny of sellers
In addition to monitoring existing listings, Temu has tightened controls during the registration of new actors. During the current period, over 40 percent of all new seller applications were rejected for failing to pass the platform’s verification. Furthermore, over 16,000 stores were closed due to repeated violations of the rules.
The company has also introduced a function that blocks searches for terms such as "fake," "dupe," or "counterfeit." Instead of product results, consumers are shown information about the risks of counterfeits. According to Temu, approximately 80,000 such searches are blocked daily.
Through the Brand Guardian Initiative (BGI), the platform now collaborates with over 3,000 brands, including 500 small and medium-sized enterprises, to integrate their rights directly into the monitoring systems.
Response to regulatory pressure
The tightened measures come after a period of economic and regulatory pressure for the parent company PDD Holdings. In May 2026, the group reported a decreased net profit for the first quarter, with revenue of 106.2 billion yuan failing to meet market expectations. The company has been affected by, among other things, weaker domestic demand and increased competition from players such as Alibaba and JD.com.
At the same time, Temu’s business model of direct shipping from China has faced strong criticism in Europe, culminating in the EU Commission’s billion-kronor fine in May. The EU investigation pointed to test purchases of, among other things, baby products containing dangerous chemicals as evidence that Temu’s control systems had not functioned. Temu, for its part, claimed that the fines were disproportionate and based on older data from 2024.
With the new intellectual property report, Temu is attempting to demonstrate that the platform’s current procedures have been significantly strengthened ahead of the upcoming deadline for the EU Commission’s action plan.