The lawsuit alleges that Temu has violated Nebraska’s Consumer Protection Act as well as the state’s Uniform Deceptive Trade Practices Act.
Examples of Temu’s unlawful practices highlighted in the statement include: employing malware to collect Nebraskan data, Chinese Communist Party (CCP) theft of Nebraskan data, deceptive product listing practices, no meaningful return process, allowing infringement to thrive, deceptive “local” labels, and greenwashing itself as eco-friendly.
The lawsuit was filed against Temu, its owner PDD Holdings, online retailer Pinduoduo, and app operator Whaleco.
The attorney general is also seeking refunds for harmed Nebraskans, penalties for violating Nebraska laws, and all other available relief, according to the press release.
Among the sources and investigations cited in the lawsuit, is an investigative report from CNN, where sources discovered that “the app was programmed to bypass users’ cell phone security in order to monitor and record a user’s activities across their phone—everything from “checking notifications,” “monitor activities on other apps,” and even “read private messages and change settings.”
Lawsuits Pile Up
Nebraska is the second state to file a lawsuit against Temu. In June 2024, Arkansas’s Attorney General Tim Griffin filed a lawsuit against Temu and its affiliates for “surreptitiously granting itself access to virtually all data on a user’s cell phone,” and violating the state’s Deceptive Trade Practices Act and Personal Information Protection Act.
In May 2023, Montana banned Temu on state-owned devices.
Regarding the class action lawsuits, Temu told the media that it categorically denied the allegations and intended to defend itself vigorously.
