The state of Arkansas is suing Chinese e-commerce company Temu for allegedly stealing data

Arkansas Attorney General Tim Griffin recently announced that he has filed a lawsuit against e-commerce website Temu for allegedly violating the state’s Deceptive Trade Practices Act as well as the Privacy Act. The lawsuit was filed in Cleburne County Circuit Court in Arkansas.

The lawsuit calls for an end to Temu’s “deceptive trade practices and violations of user privacy, civil penalties, and all other monetary and equitable relief.”

The lawsuit cites reports that Temu asks users for permission to obtain personal information and then sells it. Griffin said the practice means it is “a data theft company that sells goods on the Internet as a means to an end.”

It has quickly become one of the most used e-commerce sites in the United States. It gained mainstream popularity as it was widely sold as discount merchandise. In its quarterly investor filing, Temu’s parent company, PDD Holdings, boasted that it had seen a 131% increase in revenue from January to March 2024 compared to the first three months of 2023.

Related story: Is Temu safe? Lawsuit Claims App Hacks ‘Literally Everything’

“Temu is not an online marketplace like Amazon or Walmart,” Griffin says. “This is a data theft company that sells goods online as a means to an end. Today, I filed a first-of-its-kind state lawsuit against Temu’s parent company, PDD Holdings Inc. and WhaleCo Inc. – for violating ADTPA and PIPA. Although it is known as an e-commerce platform, Temu is functionally malware and spyware. It is deliberately designed to gain unrestricted access to the user’s phone’s operating system. It can override data privacy settings on users’ devices and monetize this unauthorized data collection.

He said he was “very concerned about privacy.” It also claims that it does not “sell” personal data in the traditional sense, but only shares it with certain entities in order to create a better and more personalized service for users.

Scripps News has reached out to Temu’s parent company, PDD Holdings, for reaction.