Arizona Sues Temu Over Alleged Data Theft, Counterfeit Goods

It's an old adage: if a deal seems too good to be true, it probably is.

People have been raving about the incredible deals they've found on the Temu app, owned by China-based PDD Holdings. If you made purchases on the app, there's a good chance those low prices came at a high cost.

Arizona’s Attorney General Kris Mayes is taking on Temu, accusing the bargain shopping app of data theft and counterfeit sales.

Get our free mobile app

What’s Arizona accusing Temu of?

Attorney General Kris Mayes filed suit against Temu, alleging the company violated the Arizona Consumer Fraud Act by secretly harvesting user data and selling knockoff goods.

Investigators say the app can track GPS locations down to a few feet, access microphones and cameras, and even edit its own code to avoid detection, according to Axios. Mayes called it “possibly the gravest violation” of the law she’s ever seen.

In a statement, a Temu spokesperson said, "Temu denies the allegations in the lawsuit and will defend itself vigorously."

How does this affect Arizona shoppers?

The privacy risks are bad enough, but there's more. Temu allegedly deceived Arizona shoppers with fake reviews, false discounts, and inferior products.

One customer bought a “five-level storage container” that turned out to have just one level. Others received defective items or reported being charged for “free” offers.

Temu reportedly sold counterfeit gear for teams like the Arizona Cardinals, as well as the University of Arizona and ASU.

READ: Will TikTok Get Banned in Arizona?

Why is this bigger than just Arizona?

Temu is owned by China-based PDD Holdings. It was the most downloaded shopping app in the U.S. in 2023. Like Chinese-based app TikTok, Temu has raised concerns that it is being used for much more than its stated purpose.

Mayes argues that because Chinese law allows government access to company data, Temu poses a national security risk. Other states have raised red flags about the Temu app; Kentucky and Nebraska have filed similar lawsuits against Temu.

Federal regulators are also keeping an eye on the app. Temu has already paid out $2 million in a separate settlement earlier this year.

READ: Exposed! Who Grabs More of Arizona's Data: TikTok or Google?

What should Arizonans do now?

AG Mayes is urging Arizona residents to delete the app, uninstall Temu accounts, and scan devices for malware. Temu continues to deny the allegations. If successful, the lawsuits in Arizona and other states could change how foreign e-commerce platforms are handled.

For now, Arizona shoppers may want to think twice. If a product is cheap or free, then YOU'RE the product. Protect your data and step away from the app.