The European Union (EU) is cracking down on Chinese e-commerce retailer Temu, mandating a lengthy list of accountability measures that come with the company's new designation as a "Very Large Online Platform" (VLOP). 

The EU designated Temu as a VLOP — a classification for any digital platform with more than 45 million users — on May 31, triggering an obligation to comply with "the most stringent rules" under Europe's Digital Services Act (DSA). Moving forward, Temu will have to provide a risk assessment report to the EU by the end of September, analyzing potential risks from the sale of counterfeit goods, unsafe or illegal products, and any items that violate intellectual property rights. 

Temu will also be required to mitigate against those risks with improved moderation processes for the listing of illegal items, and refined algorithms to prevent the sale of those products in the first place. After that, the company will have to do a yearly audit to ensure that it's still in compliance with the DSA.

The VLOP designation came two weeks after the EU filed a consumer complaint against Temu, Reuters reported on May 16. The complaint alleged the company had used so-called "dark patterns" to make users spend more money on items, while failing to provide information on the platform's various sellers to determine whether products met EU product safety rules.