Temu agrees to data privacy restrictions to settle Texas lawsuit, documents say
PDD•Temu agreed to restrict its handling of Texas shoppers’ personal data and pay the state $3 million to settle privacy claims. The settlement also requires product safety testing, cybersecurity audits and potential penalties of $8 million for each year of data security violations.
1. Settlement terms
Temu agreed to settle data privacy claims raised by Texas and restrict how it handles shoppers’ personal data in the state. Under the terms, it will keep personal data on U.S. servers and send only data needed to fulfill transactions, such as shipping addresses, to China.
2. Safety and penalties
Temu must conduct annual independent product safety testing and remove products found to contain dangerous materials, terminate the sellers and affiliated stores, notify affected Texas consumers and issue full refunds. It must also hire a third-party cybersecurity auditor to examine the app’s code for malware and spyware. Temu will pay Texas $3 million, and violations of data security provisions could trigger an $8 million penalty for each year they occur. Temu denied wrongdoing in the settlement documents.
