Arkansas Attorney General Tim Griffin has initiated legal proceedings against the Chinese e-commerce app Temu, alleging widespread consumer data privacy violations. Griffin’s lawsuit, filed under the Arkansas Deceptive Trade Practices Act (ADTPA) and Personal Information Protection Act (PIPA), accuses Temu of operating as “malware” and “spyware” by unlawfully obtaining personal information from users. The lawsuit targets Temu’s parent companies, PDD Holdings Inc. and WhaleCo Inc., asserting that their deceptive practices have led to unauthorized disclosures of Arkansans’ private data.
Temu, an online marketplace managed by PDD Holdings, faced prior scrutiny after Apple suspended its app from the App Store in 2023, triggering multiple investigations including a congressional inquiry. Griffin underscored that the app’s suspension and subsequent investigations highlight serious concerns regarding its data handling practices and compliance with regulatory standards. The lawsuit represents a significant state-level effort to address escalating worries over data security and the protection of consumer information in the digital age.
Griffin emphasized the lawsuit as a pivotal step in safeguarding Arkansas residents from potential data breaches and privacy violations perpetrated by foreign entities operating within the state. He stated, “Though marketed as an e-commerce platform, Temu’s true function as malware endangers the privacy and security of Arkansans.” The legal action seeks to halt Temu’s alleged deceptive practices and secure remedies for affected consumers, reflecting broader efforts nationwide to bolster cybersecurity and regulatory oversight in the digital commerce sector.
As the case unfolds, it underscores growing regulatory scrutiny over foreign-operated platforms and their compliance with U.S. data protection laws. The outcome of Griffin’s lawsuit against Temu could set a precedent for future legal actions aimed at safeguarding consumer rights and data privacy amid the expanding influence of global digital platforms.
