United States of America: Federal Trade Commission announced settlement with Temu imposing a USD2 million fine for violations of INFORM Consumers Act

On 5 September 2025, the Federal Trade Commission (FTC) reached a settlement with Temu, operated by Whaleco, imposing a USD 2 million fine for violations of the INFORM Consumers Act of 2023. The FTC found that Temu failed to provide a clear telephonic reporting system for suspicious activity, omitted reporting mechanisms in its gamified shopping features, and did not consistently disclose required information about high-volume third-party sellers on its mobile site and product listings. Under the proposed consent order, Temu must introduce an accessible reporting system and ensure that all mandated disclosures are clearly displayed across its marketplace platforms. The Department of Justice filed the complaint and the consent order upon referral from the Commission in the District Court for the District of Massachusetts, Eastern Division.