Arkansas Attorney General Tim Griffin has filed a lawsuit alleging the Chinese e-commerce app Temu is “malware” that is illegally obtaining personal data from consumers.
Griffin referred to Temu as a “data theft” business in a press release put out recently.
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Lawmakers and consumer advocates are calling for a federal investigation into online Chinese retailers Temu and Shein.
The companies have spent billions of dollars in online American advertising with social media companies such as Meta, parent of Facebook and Instagram, and Google. The probe is warranted, critics say, because of anti-competitive practices skirting U.S. trade and public safety regulations; alleged use of slave laborers to make products sold at cut-rate prices; and advertising targeting children, low-income families and older Americans.
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The top four downloaded applications in the past 30 days in the U.S. Apple App Store and Google Play Store are owned by Chinese-tied companies, according to data from Apptopia analyzed by Axios.
While these Chinese-tied apps are thriving in the U.S., American apps are typically not permitted to operate in China due to the country’s strict censorship, according to Axios. China has over one billion internet users according to Statista, so the U.S. is missing out on a massive market while China has exclusive access to it.
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