Temu Settles With Texas and Promises to Stop Shipping Your Data Overseas

Temu, the discount shopping app owned by PDD Holdings, has settled a Texas lawsuit that accused it of funneling Texans' personal data to entities tied to the Chinese government. Under the deal, Temu must keep Texas shoppers' data on U.S.-owned and controlled servers, restrict access by China-based individuals and entities except for essential business functions, and pay the state $3 million. Future violations of the data provisions carry an $8 million penalty per year.

Texas Attorney General Ken Paxton, who filed the original suit in February alleging Temu exposed sensitive user data, called the settlement "a historic victory for data privacy, consumer protection." The deal also requires Temu to run annual independent testing for harmful substances, including PFAS, in products sold on its platform, and to remove any flagged item, terminate the responsible seller, notify affected shoppers, and issue full refunds if something turns up. Temu didn't admit wrongdoing, and the company said in a statement that it "has come to an agreement to resolve this matter" and remains focused on serving Texas consumers and businesses.

Texas is the first state to resolve claims like these against Temu, which had more than 82 million active U.S. users as of the last count cited by Paxton's office. With several other states still pursuing similar suits, this settlement reads less like a closed case and more like a template other attorneys general may now reach for.

Source: Office of the Texas Attorney General

Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →