Temu slapped with $2M fine over consumer violations

Temu has agreed to pay $2 million to settle allegations that it violated the INFORM Consumers Act.

The online marketplace Temu is settling allegations that it failed to provide customers with the information and tools to help them avoid and report stolen, fake, or dangerous items on its site.

Temu is being asked to pay $2 million by the Federal Trade Commission (FTC) and the Department of Justice (DoJ).

The online marketplace failed to provide customers with reports of “suspicious marketplace activity,” the complaint said.

Temu must disclose to customers in a “clear and conspicuous manner” the product listings of third-party sellers that lets consumers contact them electronically or by telephone if they need to report suspicious activity.

The complaint states that Temu failed to implement these mechanisms and disclose the information, which is required by law.

As Temu frequently uses third-party sellers whose products may not be easily traceable and, therefore, may be faulty or dangerous, it's imperative that the marketplace make it easy for customers to contact in case of issues with the products.

Previously, Temu had been under scrutiny for selling dangerous baby and toddler products to US customers.

The Chinese-owned company supposedly sold “deadly baby and toddler products” which were easily purchased via Temu.

A Temu spokesperson told Cybernews that "Throughout the FTC’s investigation, we worked closely with the agency, studied its feedback carefully, and made substantial efforts to address the issues identified. It was a rigorous undertaking, but we believe such scrutiny and dialogue are ultimately constructive for our long-term development. We will continue striving to uphold high standards and to be a responsible corporate citizen in the United States."