- Texas AG Ken Paxton secured a settlement requiring Temu to strengthen protections for Texans’ personal data and improve product safety standards. The agreement follows a February lawsuit against PDD Holdings Inc. and WhaleCo Inc.. which operates as Temu, alleging the companies exposed Texans’ sensitive personal information to the Chinese Communist Party.
- The settlement requires Temu to store Texas consumers’ data on US-based servers under American ownership and control and restrict access by individuals and entities in China, subject to exceptions for essential business functions. Violations of certain data security requirements carry an $8 million annual penalty. The company must also pay $3 million to the state of Texas.
- The settlement also requires annual independent product safety testing for hazardous chemicals and materials. If products are found to contain harmful substances, Temu must remove them, terminate the responsible sellers and affiliated stores, notify affected Texas consumers, and issue full refunds.