Kentucky AG accuses online shopping platform Temu of stealing data, consumer fraud in new lawsuit

LOUISVILLE, Ky. (WDRB) -- Kentucky's attorney general has filed a lawsuit against a popular online shopping platform, accusing it of stealing data from shoppers across the state.

Attorney General Russell Coleman announced Thursday he had filed a lawsuit in Woodford County Circuit Court against Temu, the China-based online shopping platform, accusing the company of "unlawful data collection, violations of customers' privacy and counterfeiting some of Kentucky's most iconic brands."

That includes well-known brands such as Churchill Downs, the University of Kentucky, the University of Louisville and Buffalo Trace Distillery.

"Temu's cheap products and flashy marketing hide real danger. Their platform can infect Kentuckians' devices with malware, steal their personal data and send it directly to the Chinese government," Coleman said in a news release Thursday. "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 claims the company illegally collects user data without their knowledge and consent. It claims the Chinese government is using that data to steal the intellectual property of American companies.

It also accuses the website of consumer fraud, including false advertising and fake customer reviews, as well as using consumer payment information to order items that customers never asked for.

Coleman's office said Temu is owned by a multibillion-dollar Chinese holding company, PDD Holdings. The company's first retail app, called Pinduoduo, was "eventually banned in the U.S. app stores for being malware." Coleman said the Temu app "shares a significant amount of its code" with the Pinduoduo app.

The lawsuit demands a jury trial and for each violation to come with a civil penalty of $2,000.

To read the complaint, click here.

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