New lawsuit criticizes Temu as a “thieving business” that steals your data

These days, we’re all about getting the most bang for our buck when we shop. For some of us, that means stocking up on coupons before hitting Walmart or Target. For others, it means seeking out even cheaper online retailers like Shein and AliExpress. But if Temu is your favorite e-commerce site, you might want to keep an eye out for a new lawsuit that claims the company is a “thieving operation” that steals customer data.

RELATED: Is Temu Legal? Things to Know Before You Buy.

According to Reuters, Temu first launched in the U.S. in September 2022, and the online store is able to keep its prices low by using a network of Chinese manufacturers who ship goods directly to customers.

“Temu was created with the goal of empowering consumers by providing them with access to a wide range of carefully curated products at ultra-competitive prices,” the company said in a press release announcing its U.S. launch. “Categories featured include fashion, beauty and health, home and garden, jewelry and accessories, electronics, shoes and bags, sports and leisure, pet supplies, office products and more.”

Temu’s popularity has skyrocketed over the past two years thanks to TikTok haul videos and Super Bowl ads. As of February, the company’s website had more than 358.2 million visitors, and its app had more than 29.6 million downloads, according to Analyzify.

But no all jumped on the platform Ago. Attorney General of Arkansas Tim Griffin just filed a lawsuit against Temu, accusing the online shopping platform of illegally accessing consumers’ personal data.

“Temu is not an online marketplace like Amazon or Walmart,” Griffin said in a statement in a press release accompanying the lawsuit. “It is a data theft business that sells goods online as a means to an end.”

Griffin is suing Temu’s parent companies — PDD Holdings Inc. and WhaleCo Inc. — for violating the Arkansas Deceptive Trade Practices Act (ADTPA) and the Arkansas Personal Information Protection Act (PIPA) by acting as “dangerous malware.”

“Specifically, Temu is intentionally designed to gain unfettered access to a user’s phone’s operating system, including, but not limited to, the user’s camera, location, contacts, text messages, documents, and other applications,” the lawsuit reads. “Temu is designed to ensure that this extensive access goes unnoticed, even by advanced users. Once installed, Temu can recompile itself and change properties, including overriding data privacy settings that users believe are in effect. Even users without the Temu app are subject to Temu’s flagrant abuse of privilege if any of their information is on a Temu user’s phone.”

Griffin claims that Temu “monetizes this unauthorized data collection by selling it to third parties, profiting at the expense of the privacy rights of Arkansas residents.”

RELATED: 5 Warnings for Shopping on Temu, According to Retail Experts.

This is the first state lawsuit accusing Temu of “deceptive trade practices.” But in his statement, Griffin noted that this is not the first time Temu’s tactics have been questioned.

“Apple suspended the availability of Temu from its digital app store in 2023, prompting multiple investigations into the company’s activities, including an ongoing investigation by the U.S. Congress,” the attorney general said.

Apple’s suspension of Temu was lifted in early July 2023 after transparency issues were addressed, according to Politico. But it’s clear that many people still have low trust in Temu — even if they’re willing to shop with the company. A 2024 Omnisend study found that just 4 percent of people in the U.S. said they trust Temu more than Amazon.

“Temu is selling goods at a very low price, not to make money on them, but to get into your phone, your device, and collect your data. Not just traditional consumer data, but also through malicious spyware to have full access to your information,” Griffin told Fox Business in a July 2 interview. Varney & Co..

The best life We’ve reached out to Temu about the new lawsuit. We’ll update this article with his response.

However, in a statement to Fox Business, a spokesperson for Temu said the company was “surprised and disappointed” by the claims, accusing Griffin of filing the lawsuit “without independently making a factual determination.”

“The allegations in the lawsuit are based on disinformation spread on the internet, primarily by short sellers, and are completely without merit. We categorically deny these allegations and will vigorously defend ourselves,” a Temu spokesman said.