Attorneys General from 21 states have raised concerns about Chinese budget online retailer, Temu, and its potential ties to the Chinese Communist Party (CCP). The attorneys general are demanding answers from Temu regarding its business practices, data privacy protection, and the use of illegal forced labor in its products. Montana Attorney General Austin Knudsen expressed his concerns, stating that it is his duty to protect consumers and hold violators of consumer protection laws accountable.
The attorneys general sent a letter to Qin Sun, Temu’s president, and Chen Lei, CEO of Temu’s parent company, PDD Holdings, expressing their deep concerns. They cited a report by the House Select Committee on the CCP, which revealed that Temu does not have a policy in place to prohibit the sale of goods from Xinjiang, a region known for its forced labor practices. The report also highlighted that Temu conducts no audits or compliance systems to ensure compliance with the Uyghur Forced Labor Prevention Act (UFLPA), a federal law that bans the import of goods made with forced labor from Xinjiang.
The Chinese communist regime has been accused of locking up over 1 million Uyghurs in internment camps in Xinjiang, subjecting them to forced labor, torture, and other inhumane treatments. Both the Biden and Trump administrations have classified these actions as a form of genocide.
Temu has faced scrutiny not only for its potential ties to forced labor but also for its data collection practices. The attorneys general expressed concerns about the extent of user data collected by Temu and the possibility that the Chinese Communist Party may have access to this data. Other Chinese-owned companies, such as TikTok and Shein, have also faced similar concerns regarding data security.
The Center for Internet Security warned that Chinese laws authorize the CCP to harvest data from China-based commercial entities like TikTok, Temu, and Shein. This has raised concerns about the CCP’s data control objectives and the potential for malign influence efforts. Montana became the first state to impose a complete ban on TikTok, with other states urged to follow suit.
In June, Arkansas filed a lawsuit against Temu, accusing the online platform of violating state privacy laws and engaging in deceptive trade practices.
The attorneys general have posed several questions to Temu and PDD Holdings, seeking clarification on various issues. They want to know if former CCP members on PDD Holdings’ executive leadership team have access to U.S. consumer data and the types of data collected from U.S. consumers. They also inquire about the locations of data storage, whether CCP officials have requested U.S. data, and how Temu notifies consumers about product recalls.
Michael Lucci, founder of nonprofit State Armor, commended the attorneys general for their efforts to protect American citizens from the potential threats posed by Temu and the CCP. He highlighted the concerns about Temu’s supply chains built with slave labor and its access to personal data of American consumers.
It is important for states to take action and protect their citizens from potential threats posed by Chinese-owned companies like Temu. The demand for transparency and accountability from Temu and other similar platforms is crucial in safeguarding consumer privacy and preventing the exploitation of forced labor.
