The top prosecutor in Arkansas warned on July 2 that Americans should be wary of using the Temu marketplace app because it’s effectively a “data theft business.”
He said that it’s “common for an online marketplace like Amazon, like Walmart, to collect certain consumer data as part of the normal course of business. I think we all know that that’s not what’s going on here.”
Instead, the company is using malware and spyware to “get into your phone, your device, and to collect your data,” Mr. Griffin told the outlet.
“Not just traditional consumer data, but using malware, spyware to have complete access to your information. And [taking it] one step further, their code is written in such a way to evade detection,” he said.
Temu is operated by Shanghai, China-based parent company Pinduoduo Inc., which includes “former Chinese communist officials” in its ranks, Mr. Griffin said.
The lawsuit, filed against the firm’s parent company, is seeking a jury trial as well as a permanent block against Temu’s data-collection activities. It also seeks a $10,000 fine for each violation of an Arkansas state law known as the Deceptive Practices Act.
The suit primarily cites research from Grizzly Research, which analyzes publicly traded firms, and alleges that Temu can “purposely ... gain unrestricted access to a user’s phone operating system, including, but not limited to, a user’s camera, specific location, contacts, text messages, documents, and other applications.”
“Temu is estimated to be losing $30 per order. Its ad spending and shipping costs (1 to 2 weeks from China, expedited to U.S. delivery) are astronomical,” the report states.
“One is left wondering how this business could ever be profitable. Temu is a notoriously bad actor in its industry. We see rampant user manipulation, chain-letter-like affinity scams to drive signups, and overall, the most aggressive and questionable techniques to manipulate large numbers of people to install the app.”
In a statement to The Epoch Times on Tuesday evening, a Temu spokesperson that it was “disappointed” and said the Arkansas lawsuit doesn’t cite “any independent fact-finding.”
“The allegations in the lawsuit are based on misinformation circulated online, primarily from a short-seller, and are totally unfounded. We categorically deny the allegations and will vigorously defend ourselves,” the firm stated. “We understand that as a new company with an innovative supply chain model, some may misunderstand us at first glance and not welcome us.”
The spokesperson continued, “We are committed to the long-term and believe that scrutiny will ultimately benefit our development. We are confident that our actions and contributions to the community will speak for themselves over time.”
“This would allow China to monitor keystrokes and logs to have direct insight into login credentials for other social media, emails, and bank accounts,” the foundation warned.
