Temu Denies Allegations That It Engaged in Deceptive Trade

Technology,

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.

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Study Shows Staggering Number of Young Men Trapped in “Addiction Economy” of Gambling, Pornography

Current Events, , , , , ,

Approximately one in eight men ages 18 to 29 use pornography, gamble, and play video games every single day, according to the Institute for Family Studies (IFS).

The IFS report released last month is based on a YouGov survey of 2,000 Gen Z men living in the United States.

In a statement online, sociology professor Brad Wilcox of the University of Virginia said the report shows, “We have a generation of young men trapped in the ‘addiction economy’—and the numbers are staggering.”

Wilcox pointed out that the data shows 11.9% of men in their late teens and twenties use pornography, gamble, and play video games — all three — every single day.

Almost one in four young men said they gambled daily. More than one in four (27%) reported using pornography daily.

But while large number of young men appear to be trapped in the “addiction economy,” Focus on the Family’s Daily Citizen points out that the news isn’t all bad for Gen Z:

“While some may look at the facts above and immediately conclude men are the primary source of society’s problems, there are heartening statistics about young men returning to church and prioritizing family life.

“Young men today are more likely to desire positive important life decisions – like going to church regularly, getting married and having children – than young women are.

“According to Gallup, more young men today (42%) say religion is “very important” to their lives than at any point in the last 25 years. Young men are now more likely than young women (29%) to say religion is “very important” to them.

“For the first time in American history, more men attend church than women – with the disparity especially pronounced among 20-somethings.

“In terms of marriage, IFS reports that 68% of unmarried young men want to get married someday, and 62% of childless young men aspire to be fathers.”

The Daily Citizen is right. We have written before about the “quiet revival” taking place among young adults in America and abroad.

Young adults — men and women alike — have driven Bible sales to record levels and are being baptized into the Christian faith. That’s good news.

But the IFS report’s findings are still deeply concerning. Millions of young adults are trapped by addiction — and in some cases, multimillion-dollar corporations are profiting from it. That should trouble everyone.

Arkansas has taken steps to protect young people from gambling and from internet pornography and other harmful material. Clearly more work still needs to be done.

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

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What Will Arkansas Get from the Settlement with Meta?

Social Media, , ,

Last week, social media giant Meta agreed to a $17.1 billion settlement with dozens of state attorneys general over a slate of consumer protection lawsuits. As part of the agreement, Meta must add a host of safety features to protect teens on Facebook and Instagram.

The proposed Settlement Agreement is still waiting for final court approval. If approved, Attorney General Tim Griffin says Arkansas would receive more than $172.4 million.

But when will Arkansas receive its share of the settlement and where will the money go? Here is what the proposed Settlement Agreement says:

Meta would pay the settlement money directly to the Arkansas Attorney General’s Office. The agreement’s payment language says “For the State of Arkansas, payments . . . shall be made directly to the Office of the Arkansas Attorney General.”

The settlement says the State of Arkansas may use the settlement money “for any lawful purpose.”

Settlement money in consumer protection cases often funds initiatives to address the harm that prompted the lawsuit in the first place.

For example, Arkansas uses tobacco settlement money to fund the State’s Tobacco Prevention and Cessation Program and other public health initiatives.

Arkansas uses money from an opioid settlement to address the opioid crisis.

Attorney General Griffin’s office has said the settlement funds from the lawsuit against Meta “will be spent consistent with the agreement, including on mental health and keeping our kids safe.”

Settlement payments to Arkansas would be made annually over the next ten years and could be nearly a quarter of a billion dollars.

At a minimum, Arkansas would receive $17,245,993.63 from Meta within 30 days after the settlement takes effect.

Assuming the settlement takes effect this year, Arkansas would then receive another $17,245,993.63 every January 15 until 2035.

That means over the next 10 years, Arkansas would receive a minimum $172,459,936, but Meta could be forced to pay more if certain “contingencies” in the settlement are met.

For example, if Snapchat, TikTok, and YouTube become subject to teen age-verification and usage requirements that are substantially similar to Meta’s — and if certain other conditions are met — Meta would pay Arkansas another $7.4 million per year.

Several lawsuits are currently in play against TikTok and other social media platforms that could force them to adopt youth-safety and usage restrictions that are similar to Meta’s.

Between minimum payments and the other contingencies in the Settlement Agreement, Arkansas could receive close to $250 million from Meta over the next decade.

Tech platforms like Meta are multibillion-dollar corporations. The men and women who profit from these businesses have a responsibility to protect their users — especially teenagers.

Children deserve proactive protection online. If tech companies won’t give children that protection, then it’s up to voters and elected officials to make sure they get it.

Family Council appreciates Arkansas Attorney General Tim Griffin for going to court to protect kids online.

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

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