US States Take on Temu in Data Privacy Lawsuits Amidst Cybersecurity Concerns

Kentucky has filed a lawsuit against Temu, accusing the e-commerce app of sharing sensitive data with the Chinese government. This is part of a growing trend of states taking on a more significant role in pursuing global cybercriminals, as the Trump administration shifts responsibility to state and local authorities. Temu's parent company, PDD Holdings, has offices in China.

Kentucky Attorney General Russell Coleman has filed a lawsuit against the e-commerce app Temu, alleging that the platform collects sensitive user data and shares it with the Chinese government. This lawsuit is part of a broader trend where states are increasingly taking on a more significant role in pursuing global cybercriminals, as the Trump administration shifts responsibility to state and local authorities. The lawsuit also accuses Temu of counterfeiting products from iconic Kentucky brands.

The complaint, filed in Woodford County Circuit Court, claims that Temu's app collects users' Wi-Fi, GPS, and camera data without appropriate consent, violating state consumer protection laws. The app is designed to evade detection and operates with a portion of its operations located in mainland China, where cybersecurity laws allow the government unfettered access to data owned by Chinese businesses [1].

Temu's parent company, PDD Holdings, originated in China and has been criticized for its handling of data privacy and security. The lawsuit also alleges that Temu sells products using stolen intellectual property from large and small brands, including those from Kentucky's historic horse racetrack in Louisville [1].

The lawsuit is not the first time Temu has faced scrutiny over its ties to China. Last year, 20 GOP state attorneys general demanded information from Temu's ownership about allegations that its China-based suppliers used forced labor. Temu denied the claim at the time [1].

Temu has become known for its heavily discounted products and aggressive advertising strategy, which included three multimillion-dollar animated Super Bowl ads last year. However, its pricing structure has been disrupted by the Trump administration's trade war with China [1].

The lawsuit is the latest instance of Temu coming under scrutiny. Several other states, including Nebraska and Arkansas, have filed similar suits against Temu. Nebraska Attorney General Mike Hilgers alleged that the app installs malware that bypasses device security and gives the company unrestricted access to users' phones [2].

Temu's parent company, PDD Holdings, has a significant amount of coding shared with the original Pinduoduo app, which was eventually banned from U.S. app stores for containing malware [2].

Kentucky Attorney General Coleman said, "Their platform can infect Kentuckians’ devices with malware, steal their personal data and send it directly to the Chinese government. At the same time, they’re eroding trust in some of Kentucky’s most iconic brands, which could lead to job losses and hardship" [2].

The lawsuit seeks an injunction against Temu to prevent these alleged harms. The case is expected to have significant implications for the e-commerce industry and data privacy laws in the United States.

References:
[1] https://www.foxnews.com/politics/temu-sued-kentucky-allegedly-giving-china-unfettered-access-user-data
[2] https://www.union-bulletin.com/news/national/kentucky-attorney-general-sues-temu-over-malware-counterfeiting-claims/article_185624a4-9346-5d00-ac0e-0449ae81ce37.html