Montana Attorney General Austin Knudsen has led a coalition of 21 attorneys general in seeking answers from online retailer Temu concerning alleged connections with the Chinese Communist Party (CCP), data collection and sharing practices, and potential violations of the Uyghur Forced Labor Prevention Act (UFLPA).
"Temu’s business practices and apparent ties to the Chinese Communist Party are deeply concerning. As attorney general, it’s my job to protect Montanans from bad actors who may be coming after their sensitive consumer data and hold anyone who has violated our consumer protection laws accountable," said Attorney General Knudsen. "I look forward to hearing from the company to ensure their business practices are in line with Montana law and data is not being shared with the CCP."
In a letter sent Thursday to the president of Temu and the CEO of PPD Holdings Inc., Temu’s parent company, Attorney General Knudsen outlined his concerns following reports suggesting that the company might not comply with federal or Montana consumer protection laws.
Last year, the United States House Select Committee on the Chinese Communist Party disclosed troubling information about Temu’s failure to adhere to American laws prohibiting forced labor by Uyghurs. The company admitted that "it does not have a policy in place to prohibit the sale of goods from Xinjiang – the location of the CCP’s ongoing genocide against the Uyghurs." Furthermore, Temu claimed it is not subject to UFLPA regulations.
The same committee also found that Temu lacks a real compliance system, concluding that "shipments from Temu containing products made with forced labor are entering the United States on a regular basis, in violation of the UFLPA."
Additionally, there are concerns regarding potential breaches of the Montana Consumer Data Privacy Act, which takes effect on October 1. "Montana has additional concerns about Temu’s and PDD Holding’s data collection practices. Like other companies subject to CCP control, Montana believes that Temu is obligated to collect and send Montana consumer data to the CCP on demand," wrote Attorney General Knudsen.
Attorney General Knudsen has requested that Temu respond within 30 days.
Attorneys general from Alabama, Alaska, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, North Dakota, Oklahoma South Carolina South Dakota Tennessee Virginia West Virginia also signed onto this letter.