Sept. 8 (UPI) -- Whaleco Inc., operating as Temu, has been ordered by a federal court to pay a $2 million civil fine for violating federal law regarding its online marketplace, the U.S. Department of Justice said Monday.
The private U.S.-registered company, which mainly sells products from China, had the most downloaded app in the United States in 2024, according to Business of Apps. The company also sells products to customers in 90 countries.
DOJ and the Federal Trade Commission filed a complaint in the U.S. District Court of Massachusetts alleging Temu didn't sufficiently disclose certain information for high-volume third-party sellers, including addresses, or provide consistent reporting methods as required by law. This included consumers' ability to electronically and telephonically report suspicious activity to the marketplace.
The agencies said they violated the INFORM Consumers Act.
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