Arkansas Attorney General Sues Temu for Deceptive Practice and Privacy Violations
Attorney General Tim Griffin has announced a lawsuit against Temu, a Chinese-owned e-commerce platform, accusing the company of deceptive practices and violations of users’ privacy rights. This action marks the first time a state has taken such a step against the company.
Temu, which offers discounted products globally, has been accused of several unfair practices. Griffin alleges that the platform is designed to collect user data and sell it to third parties, with its business model centred on data monetization rather than selling products. The lawsuit claims that Temu oversteps privacy limits, accessing valuable user information without authorization. This includes biometric data, such as fingerprints, and location details, allowing the company to gather extensive and valuable data on its users.
Griffin also accuses Temu of engaging in deceptive marketing tactics. Products sold on the platform often do not match their advertised quality, and the “discounted prices” are achieved through false-reference pricing. Furthermore, the site allegedly includes fake reviews to attract and maintain customers. These actions, Griffin argues, violate the Arkansas Deceptive Trade Practices Act and the state’s Personal Information Protection Act, resulting in unjust enrichment at the expense of Arkansans’ privacy.
Temu, launched in 2022, has been active in selling a wide range of products, including clothing, automobile accessories, kitchen appliances, and furniture. The platform has had significant downloads, raising concerns about the breadth of its data presence. Attorney General Griffin seeks a preliminary and permanent injunction against Temu, alongside other civil penalties and monetary relief, to protect the privacy rights of Arkansas residents.
Griffin believes that similar legal actions will follow from other states. His strong stance highlights the importance of ensuring that online businesses respect the privacy and security of consumer data. The lawsuit marks a critical step towards further investigating and regulating data collection practices in the digital landscape.
Key Allegations Against Temu
- Deceptive marketing practices, including false-reference pricing and fake reviews.
- Data collection and monetization, including biometric and location data.
- Designing the app to override privacy settings on users’ devices.
- Violating consumer protection and privacy laws.
