Kentucky AG Russell Coleman files lawsuit against Temu

FRANKFORT, Ky. – Attorney General Russell Coleman announced Thursday a lawsuit has been filed against Temu for unlawful data collection.

According to a release by Coleman’s office, the lawsuit against Chinese online shopping platform also alleges violations of customers’ privacy and counterfeiting some of Kentucky’s most iconic brands.

Officials say the lawsuit was filed today in Woodford County Circuit Court.

The complaint overall alleges that Temu is committing the following, according to the release:

• Illegally collecting users’ data without their knowledge and consent.
• Allowing unfettered access of that data to the Chinese Communist government.
• Stealing the intellectual property of U.S.-owned companies including some of Kentucky’s most iconic brands, including the University of Kentucky, University of Louisville, Buffalo Trace Distillery and Churchill Downs.
• Using forced labor form Chinese ethnic minorities in clear violation of U.S. trade policies.

The release says Temu was the most-downloaded mobile app in the U.S. in 2023.

According to the lawsuit, officials say those behind the app have used the new-found popularity to collect large amounts of information about customers, all without their knowledge or consent.

Temu is owned by a multibillion-dollar Chinese holding company, PDD Holdings, whose first retail app, Pinduoduo, was eventually banned from U.S. app stores for being malware. The Temu app shares a significant amount of its code with the original Pinduoduo app and has a documented relationship with the Chinese Communist Party, according to the release.

“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. “At the same time, they’re eroding trust in some of Kentucky’s most iconic brands, which could lead to job losses and hardship. Kentuckians need a strong defense against this aggression, and that’s exactly what the Attorney General’s Office intends to do.”

In addition to the misuse of Kentuckians’ personal information, officials say the lawsuit says Temu is notorious for all sorts of other consumer fraud, from advertising items that look nothing like the items that eventually arrive, to faking customer reviews, to using consumer payment information to order items the customer never asked for.

The Attorney General’s Division Chief for Consumer and Senior Protection Chris Lewis led the Commonwealth’s effort, along with Executive Director of the Office of Regulatory Relief Stephen Humphress and Assistant Attorney General Lyndsey Antos.

Read the Attorney General’s complaint here.