Temu Settles Product Reporting Method Case for $2 Million (1)

Whaleco Inc., the operator of online marketplace juggernaut Temu, agreed Friday to pay $2 million to resolve federal charges it failed to give customers an adequate product listing reporting method as mandated by the INFORM Consumers Act of 2023.

The action is the first enforcing the INFORM ACT, the Federal Trade Commission said in a press release. The law requires online marketplaces to disclose a reporting mechanism on product listings from high-volume third-party sellers.

The government filed a complaint and proposed stipulated proposed order concurrently in the US District Court for the District of Massachusetts.

The FTC alleged Temu ...