Nebraska Sues E-Commerce Platform Temu, Alleging Phone Privacy Violations
The Nebraska attorney general filed a lawsuit against online marketplace Temu on Thursday, alleging privacy and consumer protection violations. The state seeks to stop Temu from collecting, maintaining and using consumers' personally identifiable information (PII).
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“Temu’s app operates as malware; its code is designed to exfiltrate an enormous amount of sensitive information, from access to a user’s microphone, pictures, and messages, to information sufficient to track their movements,” the complaint alleges. Moreover, it alleges “this sensitive information that is unlawfully exfiltrated to Temu naturally flows to its powerful patron -- the Chinese Communist Party.”
Nebraska investigated the Temu app and found that it's “designed to collect sensitive user data without the user’s knowledge or consent and is purposely designed so that it can evade detection of this type of data collection by third-party security researchers,” including PII, “well beyond what would be necessary in the ordinary course of business for an online shopping app,” according to the complaint.
In addition to privacy and national security concerns, the lawsuit, filed in Nebraska's Lancaster County District Court, alleges that the Temu app installs malware on devices after it's downloaded, bypassing security systems and granting access to almost everything on the consumer’s phone.
Nebraska also claims copyright and intellectual property infringement, forced labor for the production of goods and deceptive practices in product listings, among other issues. Founded in 2022, Temu has faced myriad allegations and suits alleging privacy violations and unlawful data transfers to the Chinese government, such as by Arkansas AG Tim Griffin (R) and a class-action suit in Illinois.
“Temu is putting Nebraskans’ privacy at risk and running a platform rife with deceptive listings, unlawful promotional practices, and products that rip off Nebraska brands and creations,” said AG Mike Hilgers (R) in a press release.
In a statement emailed to us, Temu denied the charges. “The allegations in the Nebraska Attorney General's lawsuit are without merit and appear to be a rehash of misinformation circulated online, much of it originating from a short-seller,” a company spokesperson said. “We categorically deny the allegations and will vigorously defend ourselves against them.”