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Thursday, September 19, 2024

Arkansas AG sues Chinese e-commerce firm over data theft allegations

State AG
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Attorney General Tim Griffin | Facebook Website

LITTLE ROCK – Attorney General Tim Griffin has announced a lawsuit against Chinese e-commerce company Temu, citing violations of the Arkansas Deceptive Trade Practices Act (ADTPA) and the Arkansas Personal Information Protection Act (PIPA). Griffin's statement characterized Temu as a data-theft business rather than a traditional online marketplace.

"Temu is not an online marketplace like Amazon or Walmart. It is a data-theft business that sells goods online as a means to an end," said Griffin. "Today I have filed a first-of-its-kind state lawsuit against the parent companies of Temu—PDD Holdings Inc. and WhaleCo Inc.—for violating the ADTPA and PIPA. Though it is known as an e-commerce platform, Temu is functionally malware and spyware."

Griffin emphasized that Temu’s design allows it to gain unrestricted access to users' phone operating systems, override data privacy settings, and monetize unauthorized data collection.

"While this is the first state lawsuit against Temu over its deceptive trade practices, it is not the first time Temu’s tactics have been called into question," Griffin noted. "Apple suspended Temu from its digital app store in 2023, prompting multiple investigations into the company’s dealings, including an ongoing investigation being conducted by the U.S. Congress."

He also raised concerns about security risks associated with Temu's leadership: "Temu is led by a cadre of former Chinese Communist Party officials, which raises significant security risks to our country and our citizens."

The lawsuit was filed in Cleburne County Circuit Court and seeks an order enjoining Temu’s deceptive trade practices and privacy violations, imposing civil penalties, and providing other monetary and equitable relief for the State.

About Attorney General Tim Griffin:

Tim Griffin was sworn in as Arkansas's 57th Attorney General on January 10, 2023. He previously served as Lieutenant Governor from 2015-2023 and represented Arkansas’s Second Congressional District from 2011-2015. His congressional service included roles on several House committees.

Griffin has over 28 years of service in the U.S. Army Reserve Judge Advocate General’s Corps (JAG), currently holding the rank of colonel. He has served in various capacities including mobilization as an Army prosecutor at Fort Campbell, Kentucky, deployment with the 101st Airborne Division in Mosul, Iraq, and commanding legal operations detachments.

His educational background includes degrees from Magnolia High School, Hendrix College in Conway, Tulane Law School in New Orleans, graduate studies at Oxford University, and strategic studies at the U.S. Army War College where he graduated with distinction.

Griffin has held numerous positions within government agencies including U.S. Attorney for Eastern District of Arkansas; Special Assistant to President George W. Bush; Deputy Director of Political Affairs; Special Assistant U.S. Attorney; Senior Investigative Counsel for Government Reform; Associate Independent Counsel under David M. Barrett during HUD Secretary Henry Cisneros investigation.

He resides in Little Rock with his wife Elizabeth and their three children.

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