Temu to pay $2M civil penalty for alleged violations of INFORM Consumers Act

The Justice Department, together with the Federal Trade Commission, announced that a federal court has entered a stipulated order resolving a case against Whaleco Inc., doing business as “Temu.” Under the order, Temu, part of PDD, will pay $2M in civil penalties as part of a settlement to resolve allegations that it violated the INFORM Consumers Act in connection with its online marketplace. “The Justice Department is committed to ensuring American consumers have information about third-party sellers online and mechanisms to report suspicious marketplace behavior,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will continue to ensure that online marketplaces follow the INFORM Consumers Act.” In addition to imposing a $2M civil penalty on Temu, the stipulated order requires Temu to put measures in place to ensure compliance with the INFORM Consumers Act going forward.