TEXAS – Temu, an online retailer known for its deep discounts, has been sued by the state of Texas for what Attorney General Ken Paxton describes as “deceptive marketing” and “illegal data harvesting.”
Paxton joins attorneys general from at least four other states suing Temu, which is now one of the most downloaded apps in the United States, over data collection concerns.
Recommended Videos
The lawsuit describes Temu as “spyware disguised as a shopping app” with “impossibly low prices on a seemingly endless variety of products.”
The state is arguing four different violations of the Texas Deceptive Trade Practices Act and is seeking an injunction against the company and potentially more than $1 million in monetary relief.
Paxton argues the app has “dangerous software functions” that gain access to the user’s location and phone storage, turning “the consumer into the product.”
While Temu’s parent company PPD Holdings, Inc. is headquartered in Ireland, it is owned by Chinese software engineer Colin Huang and tied to Chinese online retailer Pinduoduo.
The lawsuit argues that these ties pose a national security risk.
“Chinese citizens (whether at home or abroad) and enterprises are obligated to support, assist and cooperate with China’s national intelligence work,” Paxton said in the lawsuit, citing Chinese law.
The lawsuit further alleges Temu has used false, misleading or deceptive tactics to increase its market share.
Paxton alleges that products will be shown to be on sale at a steep discount, when the discounted price is actually the regular market price.
He also alleged the company is misrepresenting itself as an online retailer, losing $30 per order, according to one report, to fulfill its true purpose of collecting data.
It is the fourth lawsuit filed by Paxton against Chinese companies this week.
The timing of the lawsuits is notable, as they were filed during the first days of early voting for the 2026 Republican Primary, in which Paxton is seeking a nomination for the state’s senate seat, currently held by U.S. Sen. John Cornyn.
KSAT reached out to Temu for comment on the allegations in Paxton’s lawsuit and will update this story when a response is received.
Read also: