INFORM Consumers Act FAQs
What is the INFORM Consumers Act?
The INFORM Consumers Act (the "Act") is a federal law that went into effect on June 27, 2023. The Act aims to protect consumers shopping on e-commerce platforms. The Act requires e-commerce platforms to collect, verify, and share information regarding high-volume third party sellers with consumers.
How does the INFORM Consumers Act affect sellers?
The INFORM Consumers Act requires e-commerce platforms to collect, verify, and disclose information regarding high-volume sellers on product detail pages.
What information must Temu collect from high-volume third party sellers?
Temu is required to collect and verify certain seller information, including:
· Seller’s full name, which may include the business name or the name the seller uses on the online marketplace (see FTC guidance at https://www.ftc.gov/business-guidance/resources/INFORMAct).
· Bank account information
· Tax information
· Contact information, including e-mail, phone number, and primary address
When will Temu collect this information?
We will collect and verify this information during onboarding and ask you to certify its accuracy at least on an annual basis. If we need more information, or if we need help verifying your information, we will contact you through the Seller Center or your email. If you fail to provide Temu with the required information, verify its accuracy, or respond to our annual certification request, we will provide ten days' notice before we suspend your account.
How does the Act define a high-volume third party seller?
In general, a “high-volume third party seller” is a seller in an online marketplace that, in any continuous 12-month period during the past 24 months, has had on that platform 200 or more separate sales or transactions of new or unused consumer products, and $5,000 or more in gross revenues.
If you are a high-volume seller and your total annual gross revenue on Temu equals or exceeds $20,000, Temu will disclose your contact information, including your full physical address on your product detail pages. There are some exceptions that allow us to share a partial address with customers.
What information will be displayed to customers?
Temu is required to display the addresses of high-volume third-party sellers and provide customers with a method of contacting those sellers on their product detail pages. The addresses of sellers who operate their business from their residential address are not required to be displayed if the seller provided upon registration that they do not have a separate business address and that they only have a residential address.
How do I view whether my registered address is a business address or a residential address?
Review what type of address your business has by following these steps:
Sign in to TemuSeller Center.
Click My Account.Then click Seller Profile.
Click the Business Information tab,you can see the type of address you provided for registration.
When you register as an Individual, you confirm that you do not have a separate business address and that your Residential Address operates as your business address. When you register as a Sole Proprietorship, Corporation, or Partnership, you are required to provide your Registered Business Addressduring registration.
Why is it important that I provide the requested information to Temu?
If you do not provide the required information, your online store may be suspended.