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FIRST ON FOX: Kentucky’s attorney general filed a lawsuit Thursday against e-commerce giant Temu, alleging that its app illegally gives the Chinese government access to Americans’ user data and that the company lifts intellectual property from U.S.-owned companies.
In a complaint filed in Woodford County Circuit Court, state attorneys asked for an injunction against Temu, an Amazon rival with a China-originating parent company, for what they described as "multifold" harms.
Kentucky investigators identified "code-level behaviors" in the Temu app that involved the collection of users' sensitive personal data in a manner that was not secure, in violation of state consumer protection laws, the attorneys said.
PRESSURE FROM SHEIN, TEMU ACCELERATE RETAIL CLOSURES
"These privacy and security harms are compounded both because the Temu app is purposely designed to evade detection … and because Defendants — by their own [acknowledgment] — have a portion of their operations located on mainland China, where cybersecurity laws allow the government unfettered access to data owned by Chinese businesses whenever it wishes," the attorneys wrote.
The complaint alleged that Temu improperly collects users' Wi-Fi and GPS information, as well as camera data without appropriate permission.
The attorneys also alleged that Temu brazenly sells products using stolen intellectual property of large and small brands, including that of Kentucky’s historic horse racetrack in Louisville.
"As of the date of this filing, Temu features dozens of what appear to be unlicensed products claiming to be from Kentucky brands like the University of Kentucky, University of Louisville, Buffalo Trace Distillery and Churchill Downs," the complaint reads.
Temu’s parent company is PDD Holdings, which originated in China but moved to Ireland. Before launching Temu in the United States in 2022, PDD Holdings founded Temu’s sister company, Pinduoduo, a Chinese online retailer.
Temu has become known for its heavily discounted products and aggressive advertising strategy, which included three multimillion-dollar animated Super Bowl ads last year. Temu was Apple's most downloaded free app in 2023, according to TechCrunch.
Temu's tagline is "Shop like a billionaire," though its pricing structure has in recent months been disrupted by Trump's trade war with China.
Kentucky Attorney General Russell Coleman said the company's "cheap products and flashy marketing" distract from more insidious problems.
"Their platform can infect Kentuckians’ devices with malware, steal their personal data and send it directly to the Chinese government," Coleman, an elected Republican and former U.S. attorney, said in a statement. "At the same time, they’re eroding trust in some of Kentucky’s most iconic brands, which could lead to job losses and hardship."
The lawsuit is the latest instance of Temu coming under scrutiny, mainly by Republicans, for its ties to China, a top U.S. adversary. Last year, 20 GOP state attorneys general demanded information from Temu's ownership about allegations brought by Congress that its China-based suppliers used forced labor. Temu denied the claim at the time.
Fox News Digital reached out to Temu for comment.
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