The state of Arkansas has taken legal action against Temu, a popular online shopping app in the United States, alleging that the Chinese-owned platform has violated state privacy laws and engaged in deceptive trade practices. The lawsuit, filed on June 25, accuses Temu of breaching the Arkansas Deceptive Trade Practices Act (ADTPA) and the Arkansas Personal Information Protection Act (PIPA).
According to the lawsuit, Temu entices users with low-cost Chinese goods to gain access to their personal information without their knowledge, including data such as camera access, location, contacts, text messages, and documents. The platform is said to be designed to covertly obtain this information, even from knowledgeable users, by recompiling itself and overriding privacy settings.
The complaint also alleges that Temu profits from selling this unauthorized data to third parties, compromising the privacy rights of Arkansans. The lawsuit names Temu’s parent company, PDD Holdings Inc., and WhaleCo Inc. as defendants.
Temu is accused of using deceptive pricing strategies and fraudulent tactics to attract and retain users, such as paying for positive reviews. The plaintiffs are seeking civil penalties of $10,000 per violation of the Arkansas Deceptive Trade Practices Act and other monetary and equitable relief.
Despite its popularity as a shopping app offering discounted consumer goods, Temu has faced criticism over security and privacy concerns. The platform was temporarily banned from Apple’s App Store in 2023 for alleged misrepresentations regarding data collection practices but was later reinstated as the most downloaded free app.
The lawsuit against Temu is the first state legal action taken against the platform, but it is not the first time its practices have been scrutinized. Congressional lawmakers are conducting investigations into Temu’s connections to the Chinese Communist Party (CCP) following suspensions from both Apple and Google app stores.
The article includes statements from Temu denying the allegations and expressing intent to vigorously defend against them. The lawsuit was announced by Arkansas Attorney General Tim Griffin, who raised concerns about the security risks posed by Temu’s leadership, which allegedly includes former CCP officials. Please rewrite this sentence.
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