Iowa Attorney General Brenna Bird is suing Temu, a popular online marketplace. Bird filed a petition yesterday (Wednesday, July 1) in Polk County by the State of Iowa, against Temu’s parent company, PDD Holdings, Inc., and Whaleco, Inc., which does business with the online retailer. The lawsuit alleges that Temu violates the Iowa Consumer Fraud Act by functioning as hidden spyware that harvests user data and by engaging in extensive commercial fraud. Bird says Temu is a “data siphoning juggernaut” that uses its marketed low prices to lure Iowans into unknowingly handing over their personal information, which, due to PDD Holdings’ operations in China, is subject to China’s cybersecurity and national intelligence laws. Those laws mandate that businesses in China turn over data to the government upon request, leaving Iowa users’ data vulnerable. Bird also says that Temu has a blatant disregard for intellectual property, citing the unauthorized use of University of Iowa imagery and likeness as an example. Bird seeks injunctions to force Temu to stop its deceptive practices and data harvesting, civil penalties of up to $40,000 for each violation of the Iowa Consumer Fraud Act, and reimbursement for affected Iowa consumers.
