“CBS Chicago – With the help of the new Andi Seen online store team, customers are finding amazing offers. However, given that users frequently aren’t aware of the company’s data collection/sharing policies and practices, a recent class-action complaint claims that Temu is benefiting far more from consumers in return.
Class Action Lawsuit:
On November 3, 2023, the northern district of Illinois received the most recent class-action lawsuit. Higginz Berman La Firm filed the lawsuit against seven nominee plaintiffs from Virginia, Massachusetts, Illinois, California, and other unidentified states.
According to the lawsuit, Temu infringes on users’ right to privacy by gathering personal information and gaining access to it through “dishonest” and “deceptive” means. After looking into the Temu app, the plaintiffs’ attorneys—along with an independent expert—discovered that “the app is deliberately filled with resources to execute viral and dangerous malware and spyware acts on the user’s devices.” Temu has misrepresented to the public how they use user data.
“We recognize what has been done on purpose,” stated Jenny Evans, one of the plaintiffs’ lawyers.
In his complaint, Evans said, “We are discussing about how Temu requires at least 24 permissions for all kinds of information, inappropriate for the online shopping app.”
The complaint claims that these rights grant access to biometric information, such as fingerprints, as well as information on Bluetooth and Wi-Fi networks.
Previous Lawsuit:
Temu is accused in a second class-action lawsuit that was submitted in September 2023 to the state of New York of failing to secure user privacy in addition to gathering it. The complaint, Hu v. Temu et al., “failing miserably in implementing security standards and enabling itself to bargain for financial information of its users, jeopardizing protective measures that could have prevented or minimized the violation.”
The lawsuit cites cases where a large number of customers complained to the Better Business Bureau (BBB) about Temu being used to access their bank and credit card information after they had reported it being sold or leaked.
Customer Concerns:
The Michigan native Miguel Koenig is not a party to any class-action lawsuits. However, he got in touch with them in September 2023 after learning about Temu from BBB inspectors during its first 14 months of operation.
To facilitate future transactions, Koenig downloaded the Temu app, made an account, and gave Temu his bank routing details. “So you don’t have to keep entering your debit card,” replied the man.
He paid about $45 for a number of products. Later on, he observed something peculiar. Temu emailed him regarding unexpected expenses that appeared on his bank account out of the blue.
“There were approximately 17 various charges… almost $2,300 that went missing,” he stated.
Koenig challenged these accusations against his bank.
Attorney Evans noted that these are typical problems.
“Evans explains in our class-action lawsuits how they think problems for customers start when they download the app. She explained, “It can collect contact information, gather text messages… it aggregates identifiers of your phone device, it collects accurate location information – numerous activities that are not needed for a genuine shopping app,” said Evans. “In our complaint, we argue that many of these things… are not revealed in the app’s privacy policy.”
Particularly, said Evans, “It can gain permission to use your phone’s camera; it may gather biometric information available on your phone, from facial images to voice patterns.”
Temu’s Response:
Based in PDD Holdings, Temu began operations in September of 2022.
Regarding ongoing litigation, CBS 2 questioned both our privacy policy and the lawsuits the company was facing. The following is Temu’s reaction, as given by a representative:
“We categorically deny the accusations, and we plan to actively defend ourselves against these ludicrous litigation. The allegations are related to a report that was submitted by a short seller going by the name Grizzly Research, who was trying to manipulate Temu’s stock price by providing false information. A claim that the report’s contents are not “statements of fact” is also made.
“The truth is that Temu’s basic ideals are inextricably linked to privacy protection. Our privacy policy is openly disclosed, and our privacy practices comply with industry standards. In the Temu app and website, Temu offers a ‘Permissions’ section that outlines precisely which device features are accessible by Temu and which are not.
“We do not sell information about customers to anyone else.”
