LINCOLN — Nebraska Attorney General Mike Hilgers has filed a lawsuit against the online retail giant Temu, accusing the company of harvesting user data without consent, engaging in misleading advertising, and violating state consumer protection laws.
In a press release Thursday, Hilgers stated, “Our office will hold Temu accountable for its exploitation of Nebraska consumers, brands, and creators, and fight hard for honesty and safety in the online marketplace.” The lawsuit seeks to halt the company’s alleged deceptive practices, impose penalties, and secure refunds for affected Nebraskans.
Temu, headquartered in Boston but owned by Chinese parent company PDD Holdings, has rapidly grown in popularity across the U.S., offering a broad selection of low-priced goods. However, it has also faced growing scrutiny for questionable business practices. Consumers have frequently complained about poor product quality and misleading imagery.
Hilgers’ lawsuit alleges the Temu app installs hidden malware to bypass phone security, thereby granting the company unauthorized access to personal data. The complaint also warns of potential risks tied to Chinese government influence, given its ability to compel access to user data from companies based in China.
Temu denied the allegations in an email statement, saying they are “a rehash of misinformation,” much of which they claim originated from a short-seller. The company emphasized its efforts to provide affordable goods, maintain reliable supply chains, and work with U.S. partners such as Oracle to localize operations.
In addition to the data concerns, Hilgers accuses Temu of using unlicensed branding, including Nebraska-based entities like Runza, Cabela’s, and various collegiate sports teams, as part of a pattern of deceptive marketing and a lack of a proper returns process.
This lawsuit aligns with broader efforts by Nebraska officials to limit the influence of foreign adversaries, particularly China. Governor Jim Pillen has taken several steps in recent years to strengthen cybersecurity and block Chinese-affiliated software from state devices. The Nebraska Legislature has also passed laws to regulate foreign-owned property and increase transparency around foreign actors operating in the state.
Hilgers joins Arkansas Attorney General Tim Griffin as at least the second state AG to sue Temu. Griffin, who filed his lawsuit in June 2024, described Temu as “functionally malware and spyware,” run by individuals with close ties to the Chinese Communist Party.
Temu responded to both lawsuits by denying wrongdoing and attributing the allegations to misinformation. Meanwhile, Hilgers has a history of targeting tech giants, including lawsuits against Meta and TikTok for allegedly harming teen mental health through addictive platform designs.
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