BOSTON, MA – The Justice Department and Federal Trade Commission announced that Whaleco Inc., doing business as Temu, will pay $2 million in civil penalties under a stipulated order resolving allegations that it violated the INFORM Consumers Act.
The law requires online marketplaces to clearly disclose identifying information about high-volume sellers and provide consumers with reporting mechanisms for suspicious activity. In a complaint filed in the U.S. District Court for the District of Massachusetts, the government alleged Temu failed to adequately disclose seller addresses and did not consistently provide electronic and telephonic reporting tools as required.
In addition to the penalty, the order requires Temu to implement compliance measures to meet the standards of the INFORM Consumers Act moving forward.
The case was handled by the Justice Department’s Civil Division Consumer Protection Branch and the U.S. Attorney’s Office for the District of Massachusetts, with representation from the FTC.
