- FTC says Temu didn’t give shoppers clear tools to report fake or unsafe goods.
The company also failed to share basic details about many high-volume sellers.
Temu must make changes and pay a $2 million penalty.
What happened
Temu, one of the fastest-growing online shopping apps, will pay $2 million to settle government claims that it broke the law designed to protect consumers from counterfeit, stolen, or unsafe products.
The Federal Trade Commission (FTC) says Temu violated the INFORM Consumers Act, which took effect in 2023. The law requires online marketplaces to give shoppers an easy way to report suspicious items and to clearly show who’s selling the product.
What Temu did wrong
According to the FTC:
Temu failed to offer a phone number that shoppers could use to report suspicious sellers.
It didn’t provide reporting tools in its “gamified” shopping experiences, such as spin-the-wheel coupons and in-app games, until late 2024.
Even when reporting options were added, they weren’t clear or easy to find.
In some cases, Temu didn’t clearly disclose seller names, addresses, or contact details as required.
What changes are coming
As part of the settlement, Temu must:
Give shoppers both electronic and phone-based ways to report problems, with simple instructions.
Clearly display seller information, including names and contact details, across its app, website, and gamified shopping features.
Pay a $2 million fine within a week of court approval.
Why it matters for shoppers
This is the first enforcement action under the INFORM Act, and the FTC says it’s meant to send a message to online marketplaces: follow the rules or face penalties.
If you shop on Temu—or any other marketplace—you’ll soon have clearer ways to report unsafe or suspicious items and to know more about who you’re buying from.
👉 You can also report concerns about online marketplaces directly to the FTC through its INFORM Act portal.