On October 13th, the Attorney General of Missouri, Catherine Hanaway, announced that a lawsuit has been filed against the Chinese e-commerce platform Temu, accusing it of illegally collecting users’ personal data and the possibility that such information may be accessed by the Chinese authorities. The lawsuit also involves charges of misleading consumers, false advertising of product quality, and selling infringing products.
According to the Attorney General’s office, a years-long investigation found that the Temu application is suspected of collecting personal identity information from mobile devices on a large scale without users’ knowledge or consent. This includes real-time location data, microphone and camera access permissions, as well as application and account information installed on the devices.
The lawsuit alleges that the Temu application may evade detection by altering its operational methods and using old version codes that were previously removed from the Google Play Store due to serious malware risks. The plaintiff also claims that some of the application’s code has spyware or malware characteristics.
Temu’s parent company is PDD Holdings, which conducts a significant amount of business in mainland China. Prosecutors in Missouri believe that relevant laws in China may require companies to provide data to government agencies, and Temu did not adequately inform users of these risks when they registered. As a result, there is concern that private data of American users may be at risk of being accessed by Chinese authorities.
Further reading: Report Warns: Shopping App Temu Collects User Data
The lawsuit in Missouri also alleges that Temu lacks effective age verification and parental consent mechanisms, and attracts users, including minors, through advertising and gamified designs. Additionally, the platform offers products such as weapons and drug paraphernalia that may pose harm to minors.
Regarding the sale of products, the Missouri prosecutors stated that the platform contains a large number of products that are alleged to be using trademarks without authorization. These products involve brands such as the Kansas City Chiefs (NFL), St. Louis Cardinals (MLB), Kansas City Royals (MLB), St. Louis Blues (NHL), as well as Anheuser-Busch, Budweiser, and the University of Missouri.
Temu’s supply chain has also come under scrutiny from the US Congress. A report released by the House Committee on China Issues in 2023 pointed out that Temu lacks an independent audit mechanism, mainly relying on merchants’ promises not to use forced labor and not explicitly prohibiting third-party merchants from selling goods from Xinjiang. The committee believes that there is a risk of forced labor in Temu’s supply chain.
The Uyghur Forced Labor Prevention Act of the US, which came into effect in June 2022, generally prohibits the importation of goods produced in Xinjiang or by designated entities into the US unless importers can provide evidence to overturn the presumption of forced labor.
The Missouri Attorney General’s office stated that the lawsuit is based on the state’s Consumer Protection Act, seeking a court order to permanently prevent Temu from continuing to infringe on the rights of consumers within the state, as well as imposing civil fines and providing other legal remedies.
Hanaway urged residents of Missouri to use e-commerce platforms and mobile applications cautiously, especially when it comes to the online safety of minors. Residents who believe they have been affected by Temu’s related business practices can submit complaints through the Missouri Attorney General’s website, ago.mo.gov, or by calling 800-392-8222.
Further reading: Suspected Data Collection by Temu for the Chinese Communist Party Draws Attention from Attorney Generals
Arizona has previously made similar accusations. The Attorney General of Arizona, Kris Mayes, announced last December that a lawsuit had been filed against Temu and its parent company, alleging illegal collection of users’ personal data, invasion of user privacy, and deceiving consumers through false product reviews, misleading advertisements, in violation of the state’s consumer protection laws.
The lawsuit in Arizona also raises similar concerns, suggesting that as a platform under a Chinese company, Temu may be influenced by Chinese laws and related intelligence cooperation requirements, posing a risk to sensitive data of American users.
To date, in addition to Missouri and Arizona, Attorneys General from states such as Arkansas, Nebraska, Kentucky, Texas, Oklahoma, and Iowa have also filed lawsuits against Temu. The related charges mainly involve illegal collection of user data, deceptive business practices, and intellectual property infringements.