JEFFERSON CITY — Missouri Attorney General Catherine Hanaway filed a lawsuit against online shopping platform Temu, alleging the company secretly collects consumers’ personal information, misleads shoppers about product prices and quality and engages in other unfair business practices that harm Missouri residents.
The lawsuit, filed Oct. 13 in Cole Circuit Court, names PDD Holdings Inc., the parent company of Temu; Whaleco Inc., which does business as Temu; and Temu Payments Inc. as defendants. The state is seeking a permanent injunction to stop the alleged practices, civil penalties and other relief under the Missouri Merchandising Practices Act.
According to the petition, a state-retained team of forensic investigators examined the Temu mobile application and its predecessor, the Chinese shopping app Pinduoduo.
The investigation allegedly found that Temu collects substantial amounts of personally identifiable information from users’ devices without their knowledge or consent, including precise location data, information about installed applications and accounts, and access to microphone and camera functions.
Hanaway
“My advice to all Missourians is to delete this app. Temu lied to you, stole your data, packaged it up, and potentially delivered it to the CCP,” Hanaway said in a statement announcing the lawsuit. “Our office will continue to crack down on illegal operations that intentionally harm Missouri consumers through deception and unlawful business practices. We will fight to protect Missourians’ privacy and to secure restitution for those victimized by Temu.”
The petition alleges that the app collects information beyond what is necessary to operate an online shopping platform.
Investigators reportedly found that Temu can access real-time GPS location data with an accuracy of approximately 10 feet, identify applications installed on users’ devices, and obtain information about wireless networks near a device.
The state also alleges that the app contains code designed to conceal its data-collection activities from users and security researchers.
According to the petition, the application uses encryption and other techniques to evade forensic examination and can reconfigure aspects of its code after installation without users’ knowledge or consent.
The lawsuit further alleges that Temu incorporates substantial portions of code from Pinduoduo, which Google suspended from its Play Store in March 2023 following malware concerns.
The petition states that portions of the code used in Temu are recognized by cybersecurity professionals as indicators of spyware or malware.
PDD Holdings maintains significant business operations in mainland China, according to the petition.
The state argues that Chinese laws requiring companies to cooperate with government intelligence and cybersecurity authorities create additional risks for information collected from American consumers.
The lawsuit alleges that Temu users are not adequately informed about the extent of the data being collected or the potential access to that information.
It argues that the combination of undisclosed data collection and the company's corporate ties to China creates significant privacy and security concerns for Missouri residents.
Beyond its allegations involving data privacy, the state accuses Temu of misleading consumers about merchandise, prices and promotional offers.
The petition alleges that products advertised on the platform sometimes do not resemble the items customers receive and that product descriptions and photographs can misrepresent the quality of goods being sold.
The state also challenges Temu’s use of reference prices and discounts. According to the lawsuit, the platform frequently advertises products at steep discounts from purported original prices that were never actual selling prices.
The petition alleges that such tactics create the impression that shoppers must act quickly to take advantage of temporary savings.
Missouri consumers have also reported problems involving unexpected charges, undelivered merchandise and promotional rewards, according to the petition.
The filing describes complaints from consumers who allegedly received products they had not ordered or were charged for merchandise they did not request.
In one example, a Missouri consumer reportedly received unordered items resulting in charges of approximately $170 in July 2024. Another consumer reported being charged more than $550 for merchandise they had not ordered that same month.
The lawsuit further alleges that Temu uses games, promotions and referral incentives to encourage consumers to spend more time on the platform, make purchases and persuade friends and acquaintances to sign up.
According to the petition, some users who meet the stated requirements for promotional rewards are presented with additional conditions or do not receive the promised benefits.
The state argues that these practices can cause financial harm while encouraging users to provide additional personal information.
The lawsuit also raises concerns about Temu listings that allegedly use trademarks belonging to Missouri businesses and institutions without authorization.
The petition identifies products bearing the marks of the Kansas City Chiefs, St. Louis Cardinals, Kansas City Royals, St. Louis Blues, Anheuser-Busch, Budweiser and the University of Missouri.
Hanaway said the state’s concerns extend to children who use online shopping platforms. The lawsuit alleges that Temu does not have adequate age-verification or parental-consent measures and uses child-targeted advertising and gamification to attract younger users.
It also raises concerns about listings for drug paraphernalia, weapons and other potentially dangerous items being accessible to minors.
“As we move into the holiday season, Missourians need to be especially wary of what websites, applications, and e-commerce platforms they and their children use,” Hanaway said. “As we’ve seen in this case, many apps aren’t as safe as they may appear.”
The petition also cites concerns about Temu’s supply chain. According to the attorney general’s news release, a report from the U.S. House Select Committee on the Chinese Communist Party raised concerns that shipments from China through Temu are likely to include goods produced using forced labor.
The state alleges that Temu has not made meaningful efforts to screen or verify its supply chain.
The lawsuit brings claims under the Missouri Merchandising Practices Act, which prohibits deceptive and unfair practices in connection with the sale or advertisement of merchandise. The state contends that the alleged conduct violates the law and is likely to continue without court intervention.
In addition to seeking a permanent injunction and civil penalties, the petition requests restitution for affected Missouri consumers, interest and other relief the court determines appropriate, as well as costs associated with the state’s investigation and litigation.
Cole Circuit Court case number: 26AC-CC00672
