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Temu is facing trial for invasion of privacy in Arkansas, USA

Posted on by darion

Temu, which offers low-cost goods made in China, launched in the US in 2022. Source: yanishevska/Shutterstock

The US state of Arkansas has initiated legal action against Chinese e-commerce giant Temu, owned by PPD Holdings, over alleged violations of the state’s consumer privacy laws.

On June 25, 2024, Arkansas Attorney General Tim Griffin filed a lawsuit in Cleburne County Circuit Court accusing Temu of collecting extensive user data such as location and biometric information.

Griffin says this could lead to the exploitation and theft of consumers’ private data.

The lawsuit alleges that Temu’s actions violate the Arkansas Deceptive Trade Practices Act (ADTPA) and the Arkansas Personal Information Protection Act (PIPA).

Griffin described the amount of user data collected as “shocking” and compared the app to “functionally malware and spyware” designed to gain unrestricted access to users’ phone operating systems.

The 51-page complaint requests preliminary and permanent injunctions against PDD Holdings to stop obtaining, retaining and using information from Arkansas residents.

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It also calls for a jury trial and seeks $10,000 for each ADTPA violation.

The State is seeking injunctive relief for Temu’s alleged deceptive trade practices and privacy violations, civil penalties, and any other monetary and equitable relief it deems appropriate.

Griffin said: “Temu is not an online marketplace like Amazon or Walmart. 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 companies – PDD Holdings and WhaleCo – for violations of ADTPA and PIPA.

“Although it is known as an e-commerce platform, Amu 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.”

Temu, which offers low-cost goods made in China, launched in the US in 2022.

PDD Holdings, a Nasdaq-listed Chinese company, operates both Temu and its precursor, online shopping platform Pinduoduo.

In May 2024, the European Consumer Organization BEUC sued Temu for violating EU rules on online content.