Temu, a popular Chinese-owned e-commerce platform operated by PDD Holdings Inc., has faced multiple lawsuits and legal scrutiny in 2025, primarily focused on consumer protection violations, data privacy breaches, deceptive trade practices, and intellectual property infringements.
Background and Filing of Temu Lawsuit
On June 12, 2025, Nebraska Attorney General Michael T. Hilgers filed a lawsuit against Temu and its affiliates alleging that the platform unlawfully harvests user data—including from minors—engages in deceptive marketing, facilitates the sale of counterfeit products, and employs unfair consumer practices such as false reference pricing and fake reviews.
Malware and Data Privacy Violations Alleged in Temu Lawsuit
The lawsuit accuses Temu’s app of installing malware without user consent which grants it extensive access to personal data on users’ devices. The complaint highlights concerns over the app’s sophisticated evasion tactics that prevent detection of this behavior, thereby compromising user privacy.
Additionally, due to Chinese laws requiring companies to provide data to government authorities, the lawsuit raises significant national security and privacy concerns about American consumers’ data being accessible to hostile foreign powers.
Intellectual Property Infringement and Counterfeit Product Issues
Temu is alleged to be a marketplace rife with counterfeit and knockoff products infringing on copyrights and trademarks, harming legitimate businesses and local brands. Despite reports to Temu about counterfeit sales, the problem persisted, suggesting intentional disregard for intellectual property rights.
Deceptive Marketing and Consumer Fraud Claims
The lawsuit also alleges Temu manipulates product prices through false reference pricing, misleading consumers into believing discounts are larger than they actually are. Fake customer reviews are said to skew perceived product quality, while unauthorized charges have been reported by users for orders not placed.
Other Concerns Including Forced Labor Allegations
One serious allegation in the lawsuit involves Temu’s potential use of forced labor in factories located in Xinjiang, China—an area linked to human rights violations. These claims amplify the ethical and human rights dimensions of the ongoing litigation.
Actions and Remedies Sought in the Temu Lawsuit
The Nebraska Attorney General seeks civil penalties, consumer restitution, injunctive relief to stop unlawful practices, and enforcement actions to prevent further harm to consumers, businesses, and brands.
Several other states, including Kentucky, have launched similar lawsuits focusing on data privacy and consumer protection against Temu.
Conclusion
The Temu lawsuit represents a critical effort to hold a major digital marketplace accountable for violating consumer rights, intellectual property laws, and privacy protections. The case underscores growing concerns about e-commerce platforms’ transparency and ethics, particularly those with ties to foreign governments.
Consumers and businesses are advised to stay informed about ongoing legal developments and exercise caution when interacting with such platforms.
