Online Marketplace Temu Agrees to $2 Million Penalty for Alleged INFORM Act Violations
Washington D.C. – September 5, 2025 – The Federal Trade Commission (FTC) has announced that the online marketplace Temu has agreed to pay a $2 million civil penalty to resolve allegations that it violated the Inform Consumers of Illegal Prescription Drug Dangers Act (INFORM Consumers Act). The settlement, announced today, addresses concerns that Temu failed to adequately implement measures required by the Act to prevent the sale of illegal prescription drugs on its platform.
The INFORM Consumers Act, enacted in 2020, aims to enhance transparency and accountability within online marketplaces by requiring them to verify the identity of their third-party sellers. This verification process is designed to help prevent the illegal sale of counterfeit or unapproved prescription drugs, which can pose significant risks to public health and safety.
According to the FTC’s complaint, Temu, a rapidly growing e-commerce platform, allegedly did not implement adequate systems to identify and vet the third-party sellers offering products on its website. This, the FTC asserted, created an environment where individuals or entities could potentially list and sell illegal prescription drugs without sufficient oversight.
The settlement requires Temu to pay a $2 million penalty and, importantly, to implement robust compliance programs moving forward. These programs are intended to ensure that Temu has in place the necessary controls to verify the identity of its third-party sellers and to monitor for and prevent the sale of illegal prescription drugs. The FTC emphasized that such measures are crucial for protecting consumers from potentially dangerous and unregulated products.
“This action underscores the FTC’s commitment to enforcing the INFORM Consumers Act and safeguarding the public from the risks associated with illicit prescription drug sales online,” stated an FTC representative. “We expect all online marketplaces to diligently comply with the law and take proactive steps to ensure the safety of their consumers.”
Temu, in agreeing to the settlement, has acknowledged the FTC’s concerns and committed to fulfilling its obligations under the INFORM Consumers Act. The company’s cooperation in reaching this resolution was noted by the Commission.
This penalty serves as a reminder to all online marketplaces of their responsibilities to ensure the integrity and safety of their platforms. The FTC continues to monitor the online retail landscape to protect consumers from deceptive and illegal practices.
Online Marketplace Temu to Pay $2 Million Penalty for Alleged INFORM Act Violations
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