Shop on the Temu app? Why class-action lawsuits have been proposed over privacy
globalnews.caTemu, a popular marketplace where consumers can buy direct from factories overseas at cheap prices, is drawing concerns from lawyers and privacy experts who allege the shopping app can be “invasive” for unwitting users.
Temu is currently the subject of two proposed class-action lawsuits filed last year in district courts in New York and Illinois, which have not been certified. A third class action was filed in Quebec in March.
Many Canadians might first have been exposed to Temu during the Super Bowl this year or last, where the company took out multiple ads encouraging viewers to “shop like a billionaire.”
The app and online storefront sell cheap clothing, electronics, furniture and more from overseas manufacturers based largely in China. Temu’s website says the company was founded in Boston in 2022, but it’s a subsidiary of Shanghai-based PDD Holdings, a multinational commerce group established in 2015 in China.
PDD Holdings on Wednesday became the largest e-commerce player in China by market valuation, topping rival giant Alibaba, according to a CNBC report citing LSEG data.
The allegations about Temu’s deep reach into user data come as governments in both Canada and the United States grapple with privacy concerns around apps like TikTok, another Chinese-owned platform.
Temu has also earned comparisons to China’s ultra-fast-fashion giant Shein among industry observers for its factory-to-consumer business model.
As of May 31, Temu is the top free app on the Apple App Store and Google Play Store in Canada.
Temu is currently the subject of two proposed class-action lawsuits filed last year in district courts in New York and Illinois.
A third class action was filed in Quebec in March, but is not yet certified and is
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