United States of America: Announced Attorney General lawsuit against Temu for allegedly violating the ADTPA and the PIPA (Case No. 12CV-24-149)

On 25 June 2024, the State of Arkansas, represented by Attorney General Tim Griffin, filed a lawsuit against the parent companies of Temu, PDD Holdings Inc. and WhaleCo Inc., alleging violations of the Arkansas Deceptive Trade Practices Act (ADTPA) and the Arkansas Personal Information Protection Act (PIPA). The lawsuit claims that Temu operates not just as an online marketplace but as a business that collects and monetises user data through unauthorised means. In addition, Temu is accused of using malware and spyware tactics to gain unrestricted access to users' phone operating systems, overriding privacy settings, and collecting sensitive data without consent. The complaint highlights security concerns due to the involvement of former Chinese Communist Party officials in Temu's leadership, suggesting potential national security risks. The lawsuit seeks to enjoin Temu's deceptive practices, impose civil penalties, and provide other monetary and equitable reliefs. Furthermore, the case references prior incidents, including Apple's suspension of Temu from its app store in 2023 and ongoing investigations by the US Congress. Attorney General Griffin emphasises the lawsuit as a critical defence of Arkansans' privacy rights against exploitative practices by a foreign entity, marking a significant legal challenge to Temu and positioning it as a landmark action by a US state against a foreign-operated e-commerce platform accused of pervasive privacy and security violations.