Arizona sues Chinese-owned e-tailer Temu for alleged consumer fraud, privacy violations

PHOENIX – Arizona Attorney General Kris Mayes announced Wednesday that the state is filing a consumer fraud lawsuit against discount e-tailer Temu.

The lawsuit, which was filed Tuesday in Maricopa County Superior Court, accuses the Chinese-owned online marketplace of unlawfully collecting data, violating customers’ privacy and selling counterfeit products.

Arizona brands such as the Arizona Cardinals, Fender Guitars, University of Arizona, Arizona State University and Northern Arizona University have been victimized by the company’s counterfeit goods, according to the suit.

“We allege that Temu has repeatedly and willfully violated the Arizona Consumer Fraud Act and put the privacy of Arizonans, including minors, at extreme risk,” Mayes said in a press release. “Arizonans should be aware that behind Temu’s low prices and shiny advertising, there is real danger.”

AG Mayes warns about malware from Temu app

Mayes also warned that the company’s app can infect devices with malware that steals private data without the user’s knowledge.

“I will not stand by while a Chinese company vacuums up reams of sensitive data from Arizonans’ phones and profits from deception and abuse,” she said. “We are taking Temu to court to stop these practices, protect Arizonans’ privacy, and hold Temu fully accountable under Arizona law.”

Prosecutors are concerned about Temu being subject to laws in China that require Chinese companies to hand over data requested by the government.

Temu denied all of the allegations in a statement to 12News.

There have been legislative efforts at the federal level to counter China’s influence, especially when it comes to technology and intellectual property. But Mayes suggested there should be greater intervention by the federal government to protect consumers.

In September of this year, the U.S. Department of Justice and Federal Trade Commission ordered the e-commerce company to pay $2 million in civil penalties for violating the INFORM Consumers Act.

Attorneys general in Kentucky, Nebraska and Arkansas have filed lawsuits similar to Arizona’s in recent years.

The Associated Press contributed to this report.

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