Arizona Attorney General Kris Mayes filed a lawsuit against Temu, alleging the Chinese-owned online retailer company cheats consumers while illegally collecting their data.
Mayes’ lawsuit alleges that a forensic investigation conducted by outside experts hired by her office found the Temu app “has multiple hallmarks of spyware and malware.” It also names PPD Holdings, Temu’s parent company, and Pinduoduo, a related app.
“Our complaint alleges that Temu collects a shocking amount of sensitive data on its users,” Mayes said. “This data includes GPS location they can track everywhere you go.”
The lawsuit also alleges the app collects information about other apps installed on a user's phone along with the cellular data and wifi networks connected to a phone.
The app does all that without the user’s permission, Mayes claimed.
“Temu has also collected this data from minors under the age of 18, without the consent of those minor’s parents,” she said. “This data collection happens without the user's meaningful knowledge or consent, beyond failing to disclose the depth and breadth of the data it collects, temu actively works to prevent this conduct from being detected.”
Mayes said there are similarities between the allegations against Temu and those levied against TikTok, the Chinese social media platform. The lawsuit come as both states and the federal governments have taken actions to restrict access to TikTok over that company’s ties to the Chinese government.
“If it sounds Orwellian, it's because it is and of course, compounding these risks greatly is the fact that Temu is a Chinese company mandated by Chinese law to cooperate with the Chinese Communist government's intelligence apparatus,” she said. “In other words, it can be reasonably assumed that Temu is illicitly collecting data from Arizona users and sending it to the Chinese Communist government.”
Mayes called the allegations against Temu “more egregious than TikTok in a number of different ways.”
“The level of spyware and malware by Temu goes far beyond anything that Tiktok has ever been accused of,” she added.
Too cheap to be true?
Mayes argues that Temu is violating consumer protections laws in Arizona by using the app to secretly collect personal information on users.
And, beyond the spyware allegations, the lawsuit alleges Temu is illegally deceiving buyers by selling subpar products and knock offs.
“The Temu app is awash in products that infringe upon or simply copy outright the intellectual property of American businesses, including iconic Arizona brands like the Arizona Cardinals. ASU [and] UA as well as Fender Guitars and PING golf,” she said.
Temu is a popular app that offers a range of products, from clothes and home goods to air conditioning units, at rock bottom prices.
The company, which aired advertisements during the 2024 Super Bowl, pitches itself to consumers as the place where they can “shop like a billionaire.”
But Mayes claims the retailer uses deceptive pricing gimmicks to trick consumers into thinking they are getting a deal by listing an inflated original price next to the sale price.
And sometimes those products don’t even arrive, she said.
“Temu users also frequently report that orders go undelivered, and Temu offers poor customer service for those who do try to rectify an order gone bad,” Mayes said.
The next TikTok?
Mayes is asking a judge to permanently block Temu from gathering or keeping personal information belonging to Arizona residents. She also wants the court to block the company from continuing to sell counterfeit products.
The attorney general is also seeking an order that would require Temu to return money to consumers that was generated in violation of consumer protection laws and a fine of up to $10,000 for each violation of those laws.
The lawsuit, filed in Maricopa County Superior Court, makes Arizona the fifth state to take action against Temu. Republican attorneys general in Kentucky, Arkansas and Nebraska have filed similar lawsuits, and Montana banned the app on government-owned devices.
But, so far, Mayes said she has not heard anything from the federal government about potential actions against Temu, even as the Trump administration continues to facilitate a deal for American investors to purchase the app here to comply with a law that will ban TikTok in the U.S. if its China-based developer continues to own the app.
Mayes said she would welcome federal action.
“It would be the most effective way to address this, instead of doing it state by state,” she said.
The White House did not respond to a request for comment.
In the meantime, Mayes recommends Arizonans delete their Temu accounts, remove the app from their phones and scan their devices with antivirus software.
In a statement, a Temu spokesman denied the allegations.
"We help consumers and families access quality products at affordable prices. We work to keep costs down and maintain reliable supply so people can meet their needs without stretching their budgets," according to the statement. "We also create growth opportunities for businesses by offering a low-cost alternative to traditional gatekeepers. By providing another route to market, we return power and choice to local players, small and medium-sized businesses, and consumers."
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