Temu Denies Allegations That It Engaged in Deceptive Trade

Owners of the online retailer Temu recently denied allegations that the company violated Arkansas’ Deceptive Trade Practices Act.

Temu is an online shopping platform similar to Amazon or Walmart.com. In 2023, Temu was reported to be the most widely downloaded app in the U.S., and its multibillion-dollar marketing campaign — which included a Super Bowl ad in 2024 — contributed to its success.

But Arkansas Attorney General Tim Griffin sued Temu in 2024, alleging Temu uses bargain pricing as a lure so the company can secretly harvest users’ private information.

The lawsuit alleges Temu’s phone app is able to access users’ precise locations as well as other installed apps, online accounts, microphones, and cameras. The platform can then funnel that sensitive information to computer servers that are subject to Chinese laws.

The A.G.’s lawsuit also alleges that the Temu app is able to bypass phone security systems, potentially granting Temu access to a user’s private messages.

The Arkansas Attorney General’s office says all of this is unconscionable under the Arkansas Deceptive Trade Practices Act, which carries a penalty of $10,000 per violation.

Temu’s attorneys previously asked the judge presiding over the case to dismiss the lawsuit, but the judge denied that request.

On August 28, Temu’s backers, Whaleco Inc. and PDD Holdings, filed responses in court denying Attorney General Griffin’s accusations.

Whaleco operates Temu and is a wholly owned indirect subsidiary of PDD Holdings.

The responses say that PDD Holdings is incorporated in the Cayman Islands. Its principal executive offices were previously located in Shanghai, China, but have been moved to Dublin, Ireland.

Whaleco says, “Temu has never shared any user data with the Chinese government,” and calls Arkansas’ lawsuit “baseless” and “unwarranted.”

Arkansas’ lawsuit against Temu is important because the arguments in the case are very similar to arguments in two separate lawsuits against TikTok — another popular internet platform owned by a Chinese company.

As we always say, tech companies are more than just phone apps and websites. These are multibillion-dollar businesses, and the people who operate them have a responsibility to protect the people who use their platforms.

We appreciate Arkansas Attorney General Tim Griffin’s office for continuing to pursue these court cases.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.