Chinese online retailer Temu agrees to data privacy curbs in Texas lawsuit
The company agreed to conduct annual independent product safety testing to identify products containing dangerous chemicals and materials.
Chinese e-commerce platform Temu has reached a settlement with Texas officials to address data privacy concerns raised by the state. According to documents released on Friday, Temu will implement measures to safeguard personal data of US shoppers and restrict its handling of such information. The company has agreed to conduct yearly independent product safety testing to identify items containing hazardous chemicals or materials, and must remove any products found to contain dangerous substances.
Additionally, Temu must terminate sellers and affiliated stores selling such products, notify affected Texas consumers, and provide full refunds.
Texas Attorney General Ken Paxton emphasized that the settlement also requires Temu to implement stringent product audits and safety standards to protect consumers from dangerous materials. The company must prohibit the collection and use of Americans' data, and failure to comply could result in a $8 million penalty each year. Temu, which had over 82.4 million active users in the US as of September 2023, agreed to pay $3 million to the state as part of the settlement.
The Texas Attorney General's office noted that the settlement resolves several lawsuits from multiple states concerned about Temu unlawfully harvesting US user data that could be accessed by the Chinese government.
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